The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified the agency is not responsible for fixing the pump prices of petrol amid a recent spike across the country. 

In a statement by presidential spokesperson, Bayo Onanuga, on Saturday, the NMDPRA noted the financial constraints Nigerians are facing due President Bola Tinubu’s economic policies, while expressing the agency’s commitment to stabilisation of the market.

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acknowledges the deep financial strain and difficulties many Nigerians are experiencing following the recent rise in Premium Motor Spirit (PMS) pump prices.

“We are fully sensitive to the pressure this places on households, transport workers, and businesses across the country, and we share in the commitment to seeing relief take root as market conditions stabilise,” the NMDPRA said.

Highlighting the petroleum industry act (PIA), the agency stressed that the government does not dictate the fixed prices of petrol at the pump, stating that the prices are determined by the free market. 

“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. Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared,” the statement noted.

The NMDPRA, however, maintained that the law empowers authorities to prevent anti-competitive practices, price-fixing, and the abuse of market dominance.

It further stated that NMDPRA has an established collaboration with the Federal Competition and Consumer Protection Commission(FCCPC) to “maintain rigorous joint surveillance to monitor against price-gouging, collusion, under-dispensing, and compromised product quality.”

This statement came a day after African Democratic Congress (ADC) presidential candidate Atiku Abubakar called on Mr Tinubu to intervene in the petroleum sector by lowering petrol and diesel prices in the overall interest of Nigerians.

“When petrol becomes expensive, transportation becomes expensive. When transportation becomes expensive, food becomes expensive. Farmers pay more to move produce. 

“Traders pay more to stock their shops. Workers pay more to get to work. Businesses pay more for logistics and energy. In the end, the Nigerian family receives the bill. When the government makes energy expensive, it makes life expensive,” Mr Atiku said at a media briefing on Friday.