The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the retail pump price of Premium Motor Spirit (PMS), commonly known as petrol.
The clarification came amid recent increases in petrol prices, which the regulator acknowledged have placed additional financial pressure on households, transport operators and businesses across the country.
In a statement issued on Saturday, the NMDPRA said the Petroleum Industry Act (PIA) 2021 provides for the wholesale and retail prices of petroleum products to be determined under unrestricted free-market conditions.
According to the Authority, Section 205(1) of the PIA stipulates that petroleum product prices shall be based on market forces, adding that it neither fixes pump prices nor issues administrative price templates to operators.
It explained that government intervention in petroleum pricing under Sections 205(2)-(4) of the Act could only occur under exceptional circumstances where there is formal evidence of a declared market failure.
“No such market failure has been declared,” the Authority stated.
The NMDPRA, however, stressed that deregulation does not remove its responsibility to ensure compliance with regulatory requirements and fair-trade practices within the downstream petroleum sector.
It said Section 216 of the PIA empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.
The regulator also disclosed that it was collaborating with the Nigeria Customs Service and other security agencies to strengthen surveillance along border corridors and curb the illegal diversion of petroleum products out of the country.
It added that it was working with the Federal Competition and Consumer Protection Commission (FCCPC) under a memorandum of understanding to monitor practices including price-gouging, collusion, under-dispensing and the sale of compromised petroleum products.
The Authority further announced plans to establish dedicated feedback and reporting channels through which members of the public and industry stakeholders could report suspected irregular pricing and exploitative practices for investigation and possible enforcement action.
The NMDPRA said its measures were aimed at strengthening energy security, promoting fair competition and protecting consumers within the legal framework established by the Petroleum Industry Act.
