‘It’s based on free market conditions’– NMDPRA says it doesn’t fix fuel prices

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it does not fix fuel prices or issue administrative price templates.

In a statement on Saturday, the authority clarified the statutory framework governing its operations and the steps being taken to protect consumers.

“Pursuant to the Petroleum Industry Act (PIA) 2021: Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions. The Authority does not fix pump prices or issue administrative price templates,” the statement reads.

“Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared.

“Section 216 empowers the Authority to prevent anti-competitive practices, price-fixing, and the abuse of market dominance.

“We are fully sensitive to the pressure this places on households, transport workers, and businesses across the country, and we share in the commitment to seeing relief take root as market conditions stabilise.”

The authority said it is also working with relevant agencies to ensure supply stability and curb illegal cross-border diversion of petroleum products.

The agency said it is conducting a joint security operation with the Nigeria Customs Service (NCS) and other relevant security agencies to intensify surveillance along border corridors and prevent product smuggling.

The NMDPRA said deregulation does not exempt operators from regulatory compliance or fair trade standards.

The authority added that, under its formal memorandum of understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain joint surveillance to monitor price-gouging, collusion, under-dispensing, and compromised product quality.

The agency also said it is opening dedicated feedback and reporting channels through which members of the public and industry stakeholders can report irregular pricing or exploitative trade practices for immediate regulatory investigation and enforcement.

The NMDPRA said it remains committed to fulfilling its statutory mandate of ensuring energy security, fostering fair competition, and protecting consumers within the legal framework of the PIA.

The authority’s statement comes amid increases in petrol pump prices, with consumers paying as high as N1,450 per litre for the commodity. (TheCable)