The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has placed fuel depots and retail outlets across the country under surveillance as part of efforts to prevent price gouging and ensure that pump prices of petroleum products reflect prevailing market realities.
The regulator disclosed this in a statement issued on Tuesday, following the recent decline in global crude oil prices, assuring Nigerians that the prices of petroleum products must remain cost-reflective in line with the provisions of the Petroleum Industry Act (PIA) 2021.
According to the Authority, oil marketing companies have been warned against profiteering or exploiting consumers through arbitrary pricing, stressing that regulatory sanctions would be imposed on operators found violating the law.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority notes the global drop in crude oil prices and wishes to assure the Nigerian public that pump prices of petroleum products must be cost-reflective, in accordance with the Petroleum Industry Act (2021),” the statement read.
It added, “Oil Marketing Companies (OMCs) have been cautioned against price gouging and profiteering. Depots and retail outlets are being monitored, and regulatory sanctions will be applied where applicable.”
The latest directive comes amid growing expectations that the recent decline in international crude oil prices should translate into lower domestic fuel prices under Nigeria’s deregulated downstream petroleum market.
Although petrol prices are no longer fixed by the government, the NMDPRA said deregulation does not permit exploitative pricing, insisting that market prices should reflect actual supply costs and prevailing market conditions.
To strengthen consumer protection, the Authority said it is collaborating with security agencies and the Federal Competition and Consumer Protection Commission (FCCPC) to monitor compliance and curb anti-competitive practices in the downstream petroleum sector.
“The Authority is working with security agencies and other critical stakeholders, including the Federal Competition and Consumer Protection Commission (FCCPC), to guarantee consumer protection,” it stated.
The regulator reaffirmed its commitment to ensuring adequate and uninterrupted supply of petroleum products nationwide while maintaining strict oversight of operators in both the midstream and downstream segments of the industry.
“NMDPRA reassures the public of its commitment to monitoring the midstream and downstream sector and ensuring adequate, reliable supply of petroleum products nationwide,” the statement added.
The surveillance of depots and filling stations is expected to intensify in the coming weeks as the Authority monitors pricing behaviour across the country to ensure consumers benefit from changes in global oil market fundamentals.
THE WHISTLER had reported on Monday that Minister of State for Petroleum Resources, Heineken Lokpobiri, had charged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure that the deregulation of Nigeria’s downstream petroleum sector does not become an avenue for profiteering at the expense of consumers.
The minister said while the government remained committed to a market-driven downstream sector, the regulator had a statutory responsibility under the Petroleum Industry Act (PIA) to protect consumers, ensure fair market practices and strengthen investor confidence.
The minister warned that although deregulation allows market forces to determine petroleum product prices, it must never be allowed to short-change Nigerians.
He said, “Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product? When someone pays for 10 litres of Premium Motor Spirit (PMS), they should receive exactly 10 litres, not less.”
The minister also expressed concern over the slow adjustment in petrol prices despite easing tensions in the Middle East and declining crude oil prices.
He said, “Following the de-escalation of tensions between Iran and the United States, we expected to see commensurate downward adjustment in the prices of PMS and other petroleum products.
“However, that has not yet happened. While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act (PIA).”
ENDS
