The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed the recent rise in petrol pump prices to market forces operating within Nigeria’s deregulated downstream petroleum sector.
The agency’s spokesperson, George Ene-Ita, made this known in an interview in Abuja while responding to concerns over the latest increase in fuel prices, which has been linked partly to tensions arising from the ongoing Middle East crisis.
Many motorists in the Federal Capital Territory have expressed frustration over the surge in the price of Premium Motor Spirit (PMS), commonly known as petrol. The product, which previously sold between N875 and N880 per litre, is now being sold by independent marketers for between N960 and over N1,000 per litre.
Meanwhile, filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Ltd.) are currently dispensing petrol at about N960 per litre.
The price increase has triggered widespread concern among Nigerians, many of whom are questioning the justification for the hike and its broader economic implications.
Ene-Ita explained that differences in pump prices across the country are not the result of regulatory intervention but rather the outcome of supply and demand factors within the open market.
He noted that Nigeria has been operating under a fully deregulated downstream petroleum regime since the current administration assumed office. As a result, fluctuations in petrol prices are largely influenced by prevailing market conditions.
According to him, the deregulation policy is designed to allow market forces to determine fuel prices, while also promoting competition, efficiency, and increased investment in Nigeria’s downstream oil and gas industry.
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