The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says fuel pump prices are determined by market forces and not fixed by the regulator under the Petroleum Industry Act (PIA) 2021.
The NMDPRA management made this known in a statement on Saturday, in response to concerns over the recent increase in pump prices of petrol.
It acknowledged the financial difficulties faced by Nigerians following the rise in fuel prices, noting that the situation is putting pressure on households, transport workers and businesses.
NMDPRA said Section 205(1) of the PIA provided that wholesale and retail prices of petroleum products should be based on unrestricted free-market pricing conditions.
It said the provision meant that NMDPRA did not fix pump prices or issue administrative price templates.
“Pursuant to the PIA 2021, Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions.
“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,” it said.
NMDPRA said it was also conducting joint security operations with the Nigeria Customs Service and other relevant security agencies to intensify surveillance along border corridors.
It said the measure was aimed at curbing illegal cross-border diversion of petroleum products and ensuring supply stability.
The authority said deregulation did not exempt petroleum operators from regulatory compliance or fair-trade standards.
It said that, under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintained joint surveillance to monitor price-gouging, collusion, under-dispensing and compromised product quality.
NMDPRA said it was also opening dedicated feedback and reporting channels for members of the public and industry stakeholders to report irregular pricing and exploitative trade practices.
It said the reports would be subjected to regulatory investigation and enforcement where necessary.
“NMDPRA remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition and protect consumers within the PIA’s legal framework,” it said. (NAN)
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