The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated it lacks the legal authority to fix petrol pump prices, even as Premium Motor Spirit (PMS) costs climb sharply across the country. In a statement released on September 19, 2026, the authority cited Section 205(1) of the Petroleum Industry Act (PIA), which requires that wholesale and retail petroleum product prices be determined under free-market conditions.
NMDPRA Clarifies Its Role Under the PIA
According to the NMDPRA, the regulator does not set pump prices or issue administrative price templates to fuel retailers. The authority said government intervention in petroleum pricing is only permitted under Sections 205(2) to 205(4) of the PIA, and only where a market failure has been formally declared. No such declaration has been made.
The regulator emphasized that deregulation does not excuse operators from meeting regulatory and fair-trade obligations. The NMDPRA said it is ramping up collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor price-gouging, collusion, under-dispensing, and compromised product quality. It is also working alongside the Nigeria Customs Service and security agencies to tighten surveillance along border corridors and curb petroleum product smuggling.
Petrol Prices Rise Across Major Cities
The clarification comes as fuel costs continue to climb in major cities. Checks showed filling stations selling petrol at between N1,400 and N1,450 per litre. In Lagos, prices at most stations ranged from N1,400 to N1,430 per litre, while MRS stations dispensed at N1,395 per litre. Abuja stations were selling at between N1,400 and N1,450 per litre.
The NMDPRA also said dedicated reporting channels are being set up so consumers and industry stakeholders can flag irregular pricing and other exploitative conduct for investigation.
Dangote Refinery Cuts Diesel Price
Earlier, Legit.ng reported that Dangote Refinery had reduced the price of Automotive Gas Oil (diesel) at its gantry by N100 to N1,600 per litre, raising expectations of lower transport, logistics and manufacturing costs. Analysts said the price reduction could intensify competition in Nigeria's downstream petroleum market, particularly as depot prices have remained relatively high in recent weeks.
Diesel has recently sold for between N1,660 and N1,670 per litre at major Lagos depots, including African Terminal, Sahara, Ibeto and Duport.
