By Mary Izuaka

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it has no power to fix the pump price of petrol under the Petroleum Industry Act (PIA) 2021.

In a statement on Saturday, the Authority acknowledged the financial strain many Nigerians are facing following the recent rise in petrol prices, saying it is sensitive to the pressure on households, transport workers and businesses.

“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 root as market conditions stabilise,” the NMDPRA said.

The regulator explained that Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions, adding that it does not fix pump prices or issue administrative price templates.

It further cited Section 205(2)–(4), which restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure, noting that no such market failure has been declared.

The NMDPRA added that Section 216 empowers it to prevent anti-competitive practices, price-fixing, and abuse of market dominance.

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On measures to stabilise supply, the Authority said it is conducting joint security operations with the Nigeria Customs Service (NCS) and other security agencies to intensify surveillance along border corridors and prevent smuggling and illegal diversion of petroleum products.

It also said deregulation does not exempt operators from regulatory compliance, adding that under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain joint surveillance against price-gouging, collusion, under-dispensing and compromised product quality.

The Authority announced plans to open dedicated feedback and reporting channels for the public and industry stakeholders to report irregular pricing or exploitative practices for immediate investigation and enforcement.

“The NMDPRA remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition, and protect consumers within the PIA’s legal framework,” the statement said.