The downstream regulator says it does not fix prices of petroleum products under the Petroleum Industry Act
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified surveillance along Nigeria’s border corridors to curb petrol smuggling and illegal cross-border diversion as rising Premium Motor Spirit (petrol) prices deepen pressure on households, transport operators and businesses.
The Authority, in a statement issued by its management, said the enforcement operation was being conducted jointly with the Nigeria Customs Service and other relevant security agencies to strengthen supply stability and prevent the illegal movement of petroleum products across the country’s borders.
The move comes amid renewed concerns over the sharp increase in petrol pump prices, with consumers facing higher transportation and operating costs.
Pinnacle Daily reports that the pump prices of petrol have risen to about ₦1,500 per litre in some parts of the country following the increase in ex-depot price by Dangote Refinery and the landing cost of imported products.
The rose by ₦185 in 22 days from ₦1,165 per litre on August 21 to ₦1,350 per litre on September 12, 2026. The refinery said this was in response to surging cost of crude oil in the international market.
NMDPRA clarified that it does not determine or administratively fix petrol pump prices under the Petroleum Industry Act (PIA) 2021.
According to the regulator, Section 205(1) of the Act provides that wholesale and retail prices of petroleum products shall be determined under unrestricted free-market conditions.
It added that the Authority neither fixes pump prices nor issues administrative price templates for petroleum products.
“Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure,” the Authority said, adding that no such market failure had been declared.
The downstream regulator said its regulatory powers nevertheless extend to preventing anti-competitive practices, price-fixing and abuse of market dominance under Section 216 of the PIA.
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NMDPRA also disclosed that it was strengthening collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) to monitor the downstream petroleum market.
Under their existing Memorandum of Understanding, the agencies are conducting joint surveillance to detect alleged price-gouging, collusion, under-dispensing and compromised product quality.
The regulator said deregulation does not exempt petroleum operators from complying with regulatory requirements or fair-trade standards.
It further announced plans to open dedicated feedback and reporting channels through which consumers and industry stakeholders can report irregular pricing and other exploitative trade practices for investigation and possible enforcement action.
The Authority acknowledged the financial strain caused by the recent increase in petrol prices, saying it was “fully sensitive” to the pressure on households, transport workers and businesses.
It said its interventions were aimed at protecting consumers, ensuring energy security and fostering fair competition while allowing the downstream market to operate within the framework established by the PIA.
The NMDPRA said it remained committed to seeing market conditions stabilise and providing relief to consumers as supply and market conditions improve.
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