RismadarVoice Business
September 19, 2026
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, says it does not determine petrol pump prices, insisting that retail and wholesale petroleum product prices are governed by market forces under the Petroleum Industry Act, PIA.
The regulator clarified on Saturday amid public concerns over the latest increase in petrol prices and its impact on households, transport operators and businesses.
NMDPRA acknowledged the financial pressure facing Nigerians but said the existing legal framework does not permit it to administratively fix pump prices under normal market conditions.
NMDPRA EXPLAINS LEGAL POSITION
The authority cited Section 205(1) of the Petroleum Industry Act 2021, which provides for wholesale and retail petroleum product prices to operate under unrestricted free-market pricing conditions.
It said government intervention is permitted only under exceptional circumstances involving a formally established market failure, adding that no such market failure has been declared.
The regulator also cited Section 216 of the Act, which empowers it to address anti-competitive practices, price-fixing and abuse of market dominance.
NMDPRA stressed that deregulation does not mean petroleum marketers and other operators are exempt from regulatory oversight or fair-trading requirements.
REGULATOR MOVES AGAINST MARKET ABUSES
The authority said it was working with the Federal Competition and Consumer Protection Commission, FCCPC, to monitor suspected price-gouging, collusion, under-dispensing and compromised petroleum product quality.
It is also conducting joint operations with the Nigeria Customs Service and other security agencies to strengthen surveillance along border corridors and curb illegal diversion of petroleum products.
NMDPRA said dedicated channels were being opened for consumers and industry stakeholders to report suspected irregular pricing and exploitative practices, with complaints subject to investigation and enforcement where necessary.
The regulator maintained that while market conditions determine pump prices, operators remain subject to competition, consumer-protection and product-quality regulations.
It said its responsibility under the PIA remains to promote energy security, encourage fair competition and protect consumers rather than administratively determine the price motorists pay at filling stations.
