The Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) said on Saturday via its verified X account that it cannot fix petrol pump prices because the Petroleum Industry Act (PIA) of 2021 limits government intervention in pricing to “exceptional circumstances” where a formal declaration of market failure has been made – a condition that has not been met.
Under the PIA, Section 205(1) mandates that wholesale and retail petroleum prices be set by “unrestricted free market pricing conditions.” Section 2, subsection 24 further restricts any government price‑setting to cases of declared market failure, and the agency confirmed that no such failure has been officially declared.
The regulator explained that its statutory mandate is to prevent anti‑competitive practices, price‑fixing and abuse of market dominance, while ensuring energy security, fair competition and consumer protection within the legal framework of the Act.
To safeguard the market, NMDPRA disclosed a joint security operation with the Nigeria Customs Service and other relevant agencies aimed at intensifying surveillance along border corridors to curb product smuggling. It also highlighted a memorandum of understanding with the Federal Competitive and Consumer Protection Commission (FCCPC) that enables rigorous joint monitoring against price‑fixing, collusion, under‑dispensing and compromised product quality.
“The NMDPRA acknowledges the deep financial strain and difficulties many Nigerians are experiencing, following the recent rise in petroleum, petrol 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 roots as market conditions stabilise.”
<small>Source: Daily Post Nigeria — read the original story there.</small>
