The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that it does not set petrol pump prices or issue administrative price templates, saying pricing is strictly controlled by market forces under the Petroleum Industry Act (PIA) 2021.
The Authority, in a statement signed and made available to Tribune Online in Abuja, made reference to Section 205(1) of the Petroleum Industry Act (PIA) 2021, which states that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.
It also quoted Sections 205(2)–(4) of the Act, which restrict government intervention in pricing strictly to exceptional circumstances.
However, it added that Section 216 empowers the Authority to prevent anti-competitive practices, price-fixing and the abuse of market dominance.
While acknowledging the financial strain and difficulties many Nigerians are experiencing following the recent rise in Premium Motor Spirit (PMS) pump prices, the Authority expressed concern over the increase in fuel prices and its effect on households, transport workers and businesses across the country.
The statement, which provided clarity on the statutory framework governing its operations and the active steps being taken to protect consumers, stated:
“Pursuant to the Petroleum Industry Act (PIA) 2021, Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions. The Authority does not fix pump prices or issue administrative price templates.
“Sections 205(2)–(4) restrict government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared. Section 216 empowers the Authority to prevent anti-competitive practices, price-fixing and the abuse of market dominance.
“To address supply stability and curb illegal cross-border product diversion, the Authority 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.
“Deregulation does not exempt operators from regulatory compliance or fair trade standards.
“Under its formal Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies maintain rigorous joint surveillance to monitor against price-gouging, collusion, under-dispensing and compromised product quality.
“Public Reporting Channels: The Authority is opening dedicated feedback and reporting channels to enable members of the public and industry stakeholders to report irregular pricing or exploitative trade practices directly for immediate regulatory investigation and enforcement.”
The Authority said it remains steadfast in fulfilling its statutory mandate to ensure energy security, foster fair competition and protect consumers within the PIA’s legal framework.
Credit: tribuneonlineng.com
