NMDPRA Explains Why Government Cannot Intervene in Rising Petrol Prices
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has provided a detailed explanation for the ongoing increase in petrol prices across Nigeria, emphasizing that the government is unable to halt these rises due to the country's fully deregulated petroleum sector. According to the authority, price fluctuations are solely driven by market dynamics, including supply and demand forces, rather than regulatory intervention.
Recent Petrol Price Surge and Public Concerns
In recent weeks, petrol prices have surged significantly, with many Nigerians expressing concerns over the economic impact. Previously, petrol sold between N875 and N880 per litre in various locations. However, current checks reveal that independent marketers now sell the product between N960 and N1,000 per litre or higher in some areas, while retail outlets operated by the Nigerian National Petroleum Company Limited (NNPC) are pricing petrol at about N960 per litre. This sharp increase has sparked widespread questions among citizens about its justification and effects on daily life and business operations.
Deregulated Pricing System and Market Forces
George Ene-Ita, the spokesperson for NMDPRA, clarified in an interview with the News Agency of Nigeria in Abuja that Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. Under this system, petrol pump prices are determined by prevailing market realities, such as global crude oil prices and supply conditions. Ene-Ita stated, "Pump price vagaries are purely as a result of market dynamics," highlighting that the policy aims to promote competition, operational efficiency, and greater investment in the downstream oil and gas industry by allowing market forces to set prices.
Impact of Global Events and Domestic Refining
The recent price hike has been linked to the ongoing crisis in the Middle East, which affects global oil markets. Additionally, efforts to boost domestic refining have seen larger facilities like the Dangote Petroleum Refinery dominate supply, with significant output increases in recent months. For instance, the Dangote refinery supplied 5.6 million litres per day in November, 5.8 million in December, and 10.9 million in January 2026, far exceeding the combined output of modular refineries. In contrast, modular refineries supplied only about 2.37% of diesel demand from November 2025 to January 2026, with only three out of five listed refineries operational during this period.
Future Outlook and Regulatory Stance
NMDPRA maintains that the deregulated framework is essential for long-term sector growth, despite short-term price volatility. The authority encourages Nigerians to understand that price adjustments are a natural outcome of market operations, with the government no longer fixing fuel prices. This approach is intended to foster a more competitive and efficient petroleum industry, though it requires public adaptation to fluctuating costs based on economic conditions.
