The Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), has explained that it does not determine the price Nigerians pay for petrol at filling stations.
The clarification comes amid another increase in the pump price of Premium Motor Spirit (PMS), also known as fuel, with the regulator acknowledging the pressure rising fuel costs are putting on households, transport workers and businesses, reports say.
In a statement on Saturday, September 19, 2026, the NMDPRA said the Petroleum Industry Act, PIA, 2021, leaves the wholesale and retail prices of petroleum products to market forces.
It said Section 205(1) of the law states that petroleum prices should be determined under unrestricted free-market conditions.
“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,” it said.
The Authority also said government intervention in petroleum pricing is only allowed under exceptional circumstances where there is formal evidence of market failure.
“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,” the NMDPRA said.
The regulator, however, said deregulation did not mean petroleum operators could engage in unfair or anti-competitive practices.
According to the NMDPRA, Section 216 of the PIA gives it the power to tackle price fixing, anti-competitive practices and abuse of market dominance.
The Authority also said it was working with the Nigeria Customs Service (NCS) and other security agencies to increase surveillance along border routes and stop the illegal diversion of petroleum products out of the country.
It added that petroleum operators remained subject to regulatory requirements and fair-trade standards despite the deregulated market.
The NMDPRA said it was working with the Federal Competition and Consumer Protection Commission (FCCPC), under a memorandum of understanding to monitor cases of price gouging, collusion, under-dispensing and poor-quality petroleum products.
The Authority also announced plans to establish dedicated channels for members of the public and industry stakeholders to report unusual price increases and other exploitative practices.
It said such complaints would be investigated and appropriate enforcement action taken where necessary.
The NMDPRA said it remained committed to energy security, fair competition and consumer protection within the legal framework provided by the PIA.
SOURCE: NaijaNews
