The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it has not been stripped of its powers in determining the price of petrol in the country.
The agency’s Chief Executive Officer, Engr. Farouk Ahmed, stated that market forces are responsible for setting petrol prices, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
Ahmed’s statement comes amidst concerns that the Nigerian National Petroleum Company Limited (NNPCL) had taken over the agency’s key function of regulating fuel prices. He emphasized that the NMDPRA’s role is to ensure a level playing field for all interested parties in the oil and gas sector, preventing exploitation of the market or consumers.
The controversy stems from NNPCL’s recent release of a pricing template for petrol sales across the country, with prices ranging from N950.22 per litre in Lagos to N1,019.22 per litre in Borno State. NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, explained that the template reflects the provisions of the PIA 2021, under which petrol prices are negotiated between parties rather than set by the government.
However, some industry experts argue that the NNPCL’s role as the sole off-taker from the Dangote Refinery has created market imbalances. They call for the NMDPRA to facilitate access to refined products for other marketers to ensure fair competition and prevent predatory pricing practices.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is currently awaiting official communication from the NNPCL regarding the pricing of petrol from the Dangote Refinery. IPMAN’s National Welfare Officer, John Kekeocha, questioned the logic of selling petrol from the Dangote Refinery at higher prices than imported fuel.