Oil Marketers Selling Above Market Price Will Be Sanctioned – FG

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has disclosed plans to sanction oil marketers that are selling Premium Motor Spirit (PMS) popularly known as fuel, not reflective of reduced crude oil price.

In a statement on Wednesday, its spokesperson, George Ene-Ita, said the authority is aware of global drop in crude oil prices, insisting that pump prices of petroleum products must be cost-reflective, in accordance with the Petroleum Industry Act (2021).

Ene-Ita said Oil Marketing Companies (OMCs) had been cautioned against price gouging and profiteering, adding that Depots and retail outlets were being monitored, “and regulatory sanctions will be applied where applicable”.

He added that the authority is working with security agencies and other critical stakeholders, including the Federal Competition and Consumer Protection Commission (FCCPC), to guarantee consumer protection.

“NMDPRA reassures the public of its commitment to monitoring the midstream and downstream sector and ensuring adequate, reliable supply of petroleum products nationwide.”

The warning comes two days after the Minister of State for Petroleum, Sen. Heineken Lokpobiri, urged regulatory agencies to be proactive in protecting Nigerians from profiteering by oil marketers.

He had noted that following the de-escalation of tensions between Iran and the United States, Nigerians expected to see commensurate downward adjustment in the prices of PMS and other petroleum products.

“However, that has not yet happened. While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act (PIA).”

While emphasising that the sector is now fully deregulated, he said the decision has paved the way for the operationalisation of the Dangote Refinery and other refinery projects currently underway.
“It also ensured that artificial scarcity has become a thing of the past. You can attest to the fact that since 2023 there has been availability of product in country even with the recent challenges posed by the Us/Iranian conflict.”