The Nigerian Mainstream and Downstream Petroleum Regulatory Authority, NMDPRA, has revealed the real reason it cannot fix petrol price in Nigeria.
In a statement posted on its verified X handle on Saturday, NMDPRA said the Petroleum Industry Act, PIA, 2021 restricts government intervention in pricing strictly to exceptional circumstances, where there is formal evidence of declared market failure.
The agency stated that it is only empowered to prevent anti-competitive practices, price-fixing and the abuse of market dominance.
It, however, revealed that it is conducting a joint security effort with the Nigeria Customs Service, NCS, and other relevant security agencies to intensify surveillance along borders corridors to prevent product smuggling, consumer protection, and market monitoring.
According to the agency, under its memorandum of understanding, MoU, with the Federal Competitive and Consumer Protection Commission, FCCPC, they maintain a rigorous joint surveillance to monitor against price-fixing, collusion, under dispensing and compromised product quality.
The NMDPRA reiterated its commitment in fulfilling its statutory mandate to ensure energy security, foster fair competition, and protect consumers within the PIA’s legal framework.
“The NMDPRA acknowledges the deep financial strain and difficulties many Nigerians are experiencing, following the recent rise in petroleum, petrol pump prices.
“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 roots as market conditions stabilise.
“To provide clarity on the statutory framework governing our operations and the active steps being taken to protect consumers, the authority states as follows: Statutory Market Framework: Pursuant to 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. Section two subsection two four restrict government intervention in pricing strictly to exceptional circumstances, where there is formal evidence of declared market failure, no such market failure has been declared.
“The 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,” parts of the the statement read.
