NMDPRA Says It Does Not Fix Petrol Pump Prices Under PIA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not fix petrol pump prices under the Petroleum Industry Act (PIA) 2021.The clarification was contained in a press statement issued by the Authority amid concerns over the recent rise in Premium Motor Spirit (PMS) prices and the financial pressure it has placed on Nigerians.The NMDPRA said it was sensitive to the difficulties being experienced by households, transport workers and businesses across the country, adding that it shared the commitment to seeing relief take root as market conditions stabilise.What the PIA providesAccording to the Authority, Section 205(1) of the Petroleum Industry Act provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.The NMDPRA said the provision means it does not fix pump prices or issue administrative price templates.It added that Sections 205(2)–(4) restrict government intervention in pricing to exceptional circumstances where there is formal evidence of a declared market failure, noting that no such market failure has been declared.The Authority further cited Section 216 of the PIA, which empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance.NMDPRA announces enforcement measuresThe Authority said it is conducting a joint security effort with the Nigeria Customs Service and other relevant security agencies to intensify surveillance along border corridors and prevent the smuggling and diversion of petroleum products.It said the measure is aimed at addressing supply stability and illegal cross-border product diversion.The NMDPRA also said deregulation does not exempt petroleum operators from regulatory compliance or fair-trade standards.Collaboration with FCCPCThe Authority disclosed that, under its formal Memorandum of Understanding 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 NMDPRA 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 Authority said it remains committed to its statutory mandate of ensuring energy security, fostering fair competition and protecting consumers within the legal framework of the PIA.The statement was signed by the management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.