The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the pump prices of Premium Motor Spirit (PMS), popularly known as petrol, under the Petroleum Industry Act (PIA) 2021.

The clarification comes amid renewed concerns over rising petrol prices and the financial pressure being experienced by households, transport operators and businesses across the country.

In a statement on Saturday, the Authority said petroleum product pricing operates under a statutory free-market framework established by the PIA, stressing that it neither fixes pump prices nor issues administrative price templates.

According to the NMDPRA, Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.

It further explained that government intervention in petroleum pricing is restricted under Sections 205(2) to 205(4) to exceptional circumstances where there is formal evidence of a declared market failure.

The Authority noted that no such market failure had been declared.

However, the NMDPRA stressed that deregulation does not give petroleum operators the freedom to engage in anti-competitive practices or exploit consumers.

It said Section 216 of the PIA empowers the regulator to prevent anti-competitive conduct, price-fixing and abuse of market dominance.

Against the backdrop of concerns over supply stability and the illegal movement of petroleum products, the regulator disclosed that it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors.

The joint operation, according to the NMDPRA, is aimed at curbing the smuggling and diversion of petroleum products across Nigeria’s borders.

The development places greater emphasis on enforcement and market surveillance as key regulatory tools under the deregulated downstream petroleum market.

The Authority also disclosed that it was collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the downstream market.

The agencies are jointly conducting surveillance against alleged price-gouging, collusion, under-dispensing of petroleum products and compromised product quality.

The NMDPRA said deregulation does not exempt petroleum operators from regulatory compliance or fair-trade standards.

It added that dedicated public feedback and reporting channels were being opened to enable consumers and industry stakeholders to report irregular pricing and other exploitative trade practices for regulatory investigation and enforcement.

The Authority said its role in the deregulated market was focused on ensuring that market participants operate within the legal framework while protecting consumers from anti-competitive conduct.

It reaffirmed its commitment to ensuring energy security, promoting fair competition and protecting consumers within the framework established by the PIA.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the pump prices of Premium Motor Spirit (PMS), popularly known as petrol, under the Petroleum Industry Act (PIA) 2021.

The clarification comes amid renewed concerns over rising petrol prices and the financial pressure being experienced by households, transport operators and businesses across the country.

In a statement on Saturday, the Authority said petroleum product pricing operates under a statutory free-market framework established by the PIA, stressing that it neither fixes pump prices nor issues administrative price templates.

According to the NMDPRA, Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.

It further explained that government intervention in petroleum pricing is restricted under Sections 205(2) to 205(4) to exceptional circumstances where there is formal evidence of a declared market failure.

The Authority noted that no such market failure had been declared.

However, the NMDPRA stressed that deregulation does not give petroleum operators the freedom to engage in anti-competitive practices or exploit consumers.

It said Section 216 of the PIA empowers the regulator to prevent anti-competitive conduct, price-fixing and abuse of market dominance.

Against the backdrop of concerns over supply stability and the illegal movement of petroleum products, the regulator disclosed that it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors.

The joint operation, according to the NMDPRA, is aimed at curbing the smuggling and diversion of petroleum products across Nigeria’s borders.

The development places greater emphasis on enforcement and market surveillance as key regulatory tools under the deregulated downstream petroleum market.

The Authority also disclosed that it was collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the downstream market.

The agencies are jointly conducting surveillance against alleged price-gouging, collusion, under-dispensing of petroleum products and compromised product quality.

The NMDPRA said deregulation does not exempt petroleum operators from regulatory compliance or fair-trade standards.

It added that dedicated public feedback and reporting channels were being opened to enable consumers and industry stakeholders to report irregular pricing and other exploitative trade practices for regulatory investigation and enforcement.

The Authority said its role in the deregulated market was focused on ensuring that market participants operate within the legal framework while protecting consumers from anti-competitive conduct.

It reaffirmed its commitment to ensuring energy security, promoting fair competition and protecting consumers within the framework established by the PIA.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it does not determine or fix the pump prices of Premium Motor Spirit (PMS), popularly known as petrol, under the Petroleum Industry Act (PIA) 2021.

The clarification comes amid renewed concerns over rising petrol prices and the financial pressure being experienced by households, transport operators and businesses across the country.

In a statement on Saturday, the Authority said petroleum product pricing operates under a statutory free-market framework established by the PIA, stressing that it neither fixes pump prices nor issues administrative price templates.

According to the NMDPRA, Section 205(1) of the PIA provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.

It further explained that government intervention in petroleum pricing is restricted under Sections 205(2) to 205(4) to exceptional circumstances where there is formal evidence of a declared market failure.

The Authority noted that no such market failure had been declared.

However, the NMDPRA stressed that deregulation does not give petroleum operators the freedom to engage in anti-competitive practices or exploit consumers.

It said Section 216 of the PIA empowers the regulator to prevent anti-competitive conduct, price-fixing and abuse of market dominance.

Against the backdrop of concerns over supply stability and the illegal movement of petroleum products, the regulator disclosed that it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors.

The joint operation, according to the NMDPRA, is aimed at curbing the smuggling and diversion of petroleum products across Nigeria’s borders.

The development places greater emphasis on enforcement and market surveillance as key regulatory tools under the deregulated downstream petroleum market.

The Authority also disclosed that it was collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the downstream market.

The agencies are jointly conducting surveillance against alleged price-gouging, collusion, under-dispensing of petroleum products and compromised product quality.

The NMDPRA said deregulation does not exempt petroleum operators from regulatory compliance or fair-trade standards.

It added that dedicated public feedback and reporting channels were being opened to enable consumers and industry stakeholders to report irregular pricing and other exploitative trade practices for regulatory investigation and enforcement.

The Authority said its role in the deregulated market was focused on ensuring that market participants operate within the legal framework while protecting consumers from anti-competitive conduct.

It reaffirmed its commitment to ensuring energy security, promoting fair competition and protecting consumers within the framework established by the PIA.