The Nigerian Mainstream and Downstream Petroleum Regulatory Authority, NMDPRA, has explained that the Petroleum Industry Act, PIA, 2021, limits government intervention in petrol pricing to exceptional circumstances where there is formal evidence of a declared market failure.
In a statement posted on its verified X handle on Saturday, the authority said wholesale and retail prices of petroleum products are governed by unrestricted free market pricing conditions under Section 205(1) of the PIA.
The NMDPRA clarified that it does not fix petrol pump prices or issue administrative price templates, adding that no market failure has been declared to warrant government intervention.
The authority stated that its statutory responsibility includes preventing anti-competitive practices, price-fixing and the abuse of market dominance, rather than directly determining petrol prices.
Addressing concerns over the recent increase in petrol pump prices, the NMDPRA acknowledged the financial pressure on households, transport workers and businesses across the country.
The agency disclosed that it is working with the Nigeria Customs Service, NCS, and other relevant security agencies to intensify surveillance along border corridors to curb petroleum product smuggling.
It also said that, under its memorandum of understanding, MoU, with the Federal Competition and Consumer Protection Commission, FCCPC, it maintains joint surveillance to monitor price-fixing, collusion, under-dispensing and compromised product quality.
The NMDPRA reiterated its commitment to ensuring energy security, promoting fair competition and protecting consumers within the legal framework of the Petroleum Industry Act.
The authority assured Nigerians that it remains sensitive to the economic difficulties facing citizens and is committed to supporting relief as market conditions stabilise.
