Fuel pump prices determined by market forces - NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clarified that fuel prices are determined by market forces under the Petroleum Industry Act. The agency stated it does not fix prices but monitors for anti-competitive practices.
Why it matters
This addresses public concerns regarding rising fuel costs and explains the government's shift toward a deregulated petroleum market in Nigeria.
Layer 1 The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says fuel pump prices are determined by market forces and not fixed by the regulator under the Petroleum Industry Act (PIA) 2021.
The NMDPRA management made this known in a statement on Saturday, in response to concerns over the recent increase in pump prices of petrol.
It acknowledged the financial difficulties faced by Nigerians following the rise in fuel prices, noting that the situation is putting pressure on households, transport workers and businesses.
NMDPRA said Section 205(1) of the PIA provided that wholesale and retail prices of petroleum products should be based on unrestricted free-market pricing conditions.
It said the provision meant that NMDPRA did not fix pump prices or issue administrative price templates.
“Pursuant to the PIA 2021, Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions.
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