The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that it does not fix petrol prices because of the Petroleum Industry Act (PIA) 2021.
NMDPRA cited Section 205(1), which provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions.
It also stated that Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. It noted that no such market failure has been declared.
However, Section 216 empowers the authority to prevent anti-competitive practices, price-fixing, and the abuse of market dominance.
NMDPRA said this to acknowledge the deep financial strain and difficulties many Nigerians are experiencing following the recent rise in Premium Motor Spirit (PMS) pump prices.
"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," it said in a statement on Saturday.
Revealing the effort it is taking concerning the situation, NMDPRA 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 product smuggling.
It said it has a formal Memorandum of Understanding. (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC), adding that both agencies maintain rigorous joint surveillance to monitor against price-gouging, collusion, under-dispensing, and compromised product quality.
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