We can’t fix prices of petroleum products — NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it lacks the authority to determine the pump price of petrol, moving to clear the air following the recent increase in Premium Motor Spirit (PMS) prices.

The Authority explained that the Petroleum Industry Act 2021 dictates that wholesale and retail prices of petroleum products must be determined under unrestricted free-market conditions.

Referencing Section 205(1) of the PIA, the regulator emphasized that the law does not grant it the power to fix pump prices or issue administrative price templates.

The Authority noted that government intervention in petroleum pricing is strictly restricted to exceptional circumstances where there is formal evidence of market failure.

The agency however noted that no such market failure has been declared.

Instead, the NMDPRA stated that its role under Section 216 of the PIA focuses on preventing anti-competitive practices, price-fixing, and the abuse of market dominance.

To ensure stability in the deregulated market, the regulator revealed it is collaborating with the Nigeria Customs Service and other security agencies to strengthen surveillance along border corridors and combat the illegal cross-border diversion of petroleum products.

The Authority stressed that deregulation does not exempt operators from strict regulatory compliance or fair-trade requirements.

Through an ongoing memorandum of understanding with the Federal Competition and Consumer Protection Commission, the NMDPRA revealed that it is collaborating with the FCCPC to conduct joint market surveillance to catch practices such as price-gouging, collusion, under-dispensing, and compromised product quality.

The Authority further revealed that it is establishing dedicated feedback and reporting channels, allowing members of the public and industry stakeholders to report irregular pricing or exploitative practices for immediate regulatory investigation.