The Nigerian Midstream and Downstream Petroleum Regulatory Authority has uncovered incidents of under-dispensing of petroleum products at retail outlets across the country, prompting the regulator to order immediate checks and calibration of fuel dispensers nationwide.
It also ordered filling stations nationwide to immediately calibrate and verify their fuel dispensers and totalisers, warning that outlets caught under-dispensing petroleum products risk sanctions, including licence revocation.
The regulator described the practice as a serious breach of consumer trust. The NMDPRA gave the directive in an industry circular issued in Abuja on Tuesday and posted on its official X handle.
The latest move places the accuracy of fuel dispensing equipment at filling stations under renewed regulatory scrutiny, with the Authority saying consumers must receive the quantity of petroleum products for which they have paid.
The regulator directed all retail outlet operators to immediately check and calibrate their dispensing equipment to ensure accurate measurement.
It said, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority has observed incidents of under-dispensing of petroleum products at retail outlets nationwide. The Authority views this as a serious breach of consumer trust that will not be tolerated.
“To safeguard the interests of consumers, all retail outlet operators are hereby directed to carry out immediate calibration and verification of all dispensers and totalizers. This is intended to guarantee accurate measurement and ensure that consumers receive the full value of the product they pay for.”
The Authority warned that it had intensified inspections and enforcement operations nationwide and would take action against stations found to be short-changing consumers.
“NMDPRA has intensified inspections and enforcement activities nationwide. Outlets found to be under-dispensing, operating with improperly calibrated equipment, or otherwise compromising dispensing accuracy will be required to take immediate corrective action,” it stated.
The regulator added that repeated or serious violations could lead to the withdrawal of operating licences.
“Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s licence, in line with NMDPRA’s regulations,” the Authority warned.
The directive comes against the backdrop of the Federal Government’s broader efforts to strengthen regulatory oversight of the downstream petroleum sector following the removal of petrol subsidy and the transition to a market-based pricing regime.
With petrol now sold at prices determined largely by market conditions, accurate dispensing has become an important part of consumer protection, particularly as motorists and other users pay varying pump prices across locations.
Under-dispensing occurs when a retail outlet’s dispensing equipment delivers less product than the quantity displayed or paid for by the consumer. Faulty or improperly calibrated pumps can therefore result in consumers paying for a volume of petrol that they do not receive.
The NMDPRA said its latest enforcement action was aimed at preventing such practices and improving confidence in petroleum product transactions.
The Authority also directed major industry associations to ensure that their members comply with the directive.
It specifically called on the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria and the Petroleum Retail Outlet Owners Association of Nigeria to communicate the directive to their members.
“MEMAN, DAPPMAN, IPMAN and PETROAN are kindly requested to promptly notify their members of this directive and to support full compliance across the industry,” the regulator stated.
The NMDPRA stressed that consumer protection remained a key part of its regulatory responsibility, particularly in ensuring that petroleum transactions were transparent and accurately measured.
It said, “NMDPRA remains committed to protecting consumers, promoting transparency, and upholding the integrity of petroleum product transactions nationwide.”
The directive means filling stations now face closer scrutiny of their dispensing equipment, while operators will be expected to correct any identified defects promptly or risk regulatory sanctions.
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