NMDPRA says it cannot fix petrol prices under PIA law

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated on Saturday that it cannot fix petrol pump prices, citing the legal framework of the Petroleum Industry Act (PIA) 2021. The regulator acknowledged the financial strain caused by recent price increases but emphasized its role is limited to market oversight, not price-setting. In a statement, the NMDPRA explained that Section 205(1) of the PIA mandates that wholesale and retail prices for petroleum products be determined by unrestricted free-market conditions. "The Authority does not fix pump prices or issue administrative price templates," the statement said. It added that government intervention is restricted under the law to exceptional circumstances where there is formal evidence of a declared market failure, and no such declaration has been made. The clarification comes as petrol prices have risen above N1,400 per litre in several parts of Nigeria. The increase followed an N85 adjustment in the gantry price by the Dangote Petroleum Refinery, from N1,265 to N1,350 per litre, amid a surge in international crude oil prices.