The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has threatened to sanction fuel stations found to be cheating consumers by under-dispensing petroleum products.
NMDPRA said the sanctions will include revocation of licences of retail outlet operators found to be under-dispensing petroleum products to consumers.
The Authority, in an industry circular released on Tuesday, said it had observed incidents of under-dispensing at retail outlets nationwide, describing the practice as a serious breach of consumer trust.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has observed incidents of under-dispensing of petroleum products at retail outlets nationwide. The Authority views this as a serious breach of consumer trust that will not be tolerated,” NMDPRA stated in the circular.
To curb the malpractice, NMDPRA directed all retail outlet operators to immediately calibrate and verify their fuel dispensers and totalizers to ensure accurate measurement and that consumers receive the full quantity of products paid for.
The regulator said it had intensified inspection and enforcement activities across the country as part of efforts to protect consumers and strengthen transparency in petroleum product transactions.
According to the Authority, outlets found to be under-dispensing products, operating improperly calibrated equipment or otherwise compromising dispensing accuracy would be required to take immediate corrective action.
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It warned that persistent or serious violations would attract sanctions, “up to and including revocation of the outlet’s licence,” in line with NMDPRA regulations.
The Authority also directed the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to promptly communicate the directive to their members and support compliance across the industry.
NMDPRA said the enforcement drive was aimed at safeguarding consumers, promoting transparency and upholding the integrity of petroleum product transactions nationwide.
This latest regulatory measure comes amid recent hikes in pump prices of petroleum products following the increase in ex-depot prices by Dangote Refinery and depot owners as the cost of crude oil remains elevated in the international market.
Currently, pump prices of Premium Motor Spirit (PMS), also known as petrol, sell between ₦1,380 and ₦1,500 per litre, depending on location. Crude oil prices have surged above $100 per barrel in recent weeks as geopolitical tensions in the Middle East continue to disrupt global supply of oil and gas products.
Following concerns raised over fuel price hikes and the difficulties faced by Nigerian consumers, NDMPRA had over the weekend clarified that under the Petroleum Industry Act 2021, it does not have the power to fix pump prices.
It, however, stated that it has commenced efforts to crack down on anti-competitive practices, price fixing, and the abuse of market dominance by operators, in line with Section 216 of the PIA, which empowers it to do so.
The Authority said it has intensified surveillance along Nigeria’s borders to curb petrol smuggling and illegal cross-border diversion to address supply stability.
It said the surveillance operation is jointly being conducted with the Nigeria Customs Service and other relevant security agencies to prevent smuggling of petroleum products.
The Authority noted that the international shocks on the energy markets caused by geopolitical tensions, especially the current Middle East crisis, can also create arbitrage opportunities, thereby increasing the incentives for diversion, smuggling and other forms of illicit cross-border movement.
Pinnacle Daily reports that during a workshop convened by NMDPRA with government security agencies to strengthen inter-agency collaboration towards mitigating smuggling of petroleum products, the Authority’s Executive Director, Ogbugo Ukoha, emphasised that every litre diverted from its legitimate destination undermines market integrity, distorts demand and supply data, weakens investment confidence and ultimately compromises the efficiency and sustainability of the petroleum industry.
On Tuesday, NMDPRA conducted stakeholders’ consultation on the draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026. The regulation was developed pursuant to Section 216 of the PIA 2021, which empowers the Authority to take necessary steps to prevent anti-competitive behaviours by market operators.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X