The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said it does not have the power to determine petrol pump prices under the current provisions of the Petroleum Industry Act.
The authority stated that the prices of petroleum products are expected to be determined by market forces rather than through government-fixed price templates.
NMDPRA made this known in a statement issued on Saturday in response to concerns over the rising cost of petrol and pressure on the agency to regulate pump prices.
According to the regulator, Section 205(1) of the Petroleum Industry Act provides that wholesale and retail prices of petroleum products should be based on unrestricted free-market pricing conditions.
It explained that government intervention in petroleum pricing is only permitted under exceptional circumstances where there is clear evidence of market failure.
The authority added that no such market failure had been formally declared, meaning it could not simply impose a uniform pump price on petrol stations.
However, NMDPRA said it has the responsibility to prevent anti-competitive practices, including price-fixing, collusion and abuse of market dominance.
The regulator said it is working with the Federal Competition and Consumer Protection Commission under an existing agreement to monitor the market and tackle practices such as price-fixing, under-dispensing and the sale of poor-quality petroleum products.
It also said it was collaborating with the Nigeria Customs Service and other security agencies to monitor border routes, curb smuggling and protect consumers.
NMDPRA acknowledged the financial pressure caused by rising petrol prices, particularly for households, transport operators and businesses, but maintained that its role is to ensure energy security, fair competition and consumer protection within the law.
The Petroleum Industry Act, signed into law in 2021, introduced a market-based framework for Nigeria’s petroleum sector as part of broader reforms aimed at changing how the industry is regulated.
