We Are Helpless Over Your Plight On Increasing Petroleum Cost, NMDPRA Tells Nigerians

We Are Helpless Over Your Plight On Increasing Petroleum Cost, NMDPRA Tells Nigerians

 

OpenLife News reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has told Nigerians it is helpless over the increasing cost of Premium Motor Spirit (PMS), saying the law does not allow it to fix petrol pump prices.

The Authority stated this in a press statement issued by its Management, where it acknowledged the hardship Nigerians are facing as a result of the recent hike in petrol prices.

The NMDPRA said it understands the deep financial strain and difficulties the price increase has imposed on households, transporters and businesses across the country, but insisted its hands are tied under the current legal framework.

According to the Authority, Section 205(1) of the Petroleum Industry Act (PIA) 2021 provides that wholesale and retail prices of petroleum products shall be determined by unrestricted free market conditions.”Under the PIA, the Authority does not fix pump prices or issue administrative price templates,” it said.

It explained that Section 205 (2) to (4) of the Act only allows government intervention in pricing where there is a formally declared market failure, stressing that no such declaration has been made.

The regulator added that its mandate under Section 216 is limited to preventing anti-competitive practices, price-fixing and abuse of market dominance by operators, not determining what consumers pay at the pump.

On what it is doing to ease supply and protect consumers, the Authority said it is collaborating with the Nigeria Customs Service and security agencies to intensify border surveillance and curb illegal cross-border smuggling and diversion of petroleum products.

It also disclosed that under its Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies are maintaining rigorous joint surveillance to monitor and sanction operators involved in price-gouging, collusion, under-dispensing and sale of compromised product quality.

To give Nigerians a voice, the Authority said it is opening dedicated public feedback and reporting channels where citizens and industry stakeholders can report irregular pricing and exploitative trade practices directly for immediate regulatory investigation and enforcement.

The NMDPRA 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.