NMDPRA rules out petrol price fixing under Petroleum Industry Act

The Nigerian Midstream and Downstream Petroleum Regulatory Authority clarified its statutory position on Saturday, 19 September 2026, ruling out government price-fixing or the issuance of administrative price templates for petroleum products under the Petroleum Industry Act, according to Dailypost. This clarification follows mounting public tension and debate over why pump prices have failed to drop significantly despite a sharp fall in global crude oil prices.

The regulatory stance was issued via a statement on the agency's verified social media channels, emphasizing that wholesale and retail prices must rely on unrestricted free-market pricing conditions as stipulated by legislation. Government price intervention is legally barred unless an exceptional market failure is formally declared, which has not occurred. To monitor compliance and prevent anti-competitive practices, the agency maintains joint surveillance with the Federal Competition and Consumer Protection Commission and the Nigeria Customs Service.

Media additions

The debate intensified after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, warned during an event in Abuja on Monday that the government would not tolerate unnecessary profiteering or the exploitation of fuel consumers. As reported by Punch Newspapers, the minister argued that deregulation does not mean regulatory bodies should abdicate their responsibility to protect the public. This intervention came as pump prices hovered between ₦1,140 and ₦1,210 per litre, even though international crude benchmarks had dropped from a peak of $120 per barrel during the US-Iran conflict to approximately $72 to $73 a barrel, as noted by Business Post Nigeria.

Fuel marketers rejected any suggestion of price curbs or forced reductions. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, warned on Tuesday that operators would shutter filling stations nationwide if price controls were enforced. Ukadike explained that many independent marketers were sustaining heavy financial losses because successive price cuts by the Dangote refinery left them holding expensive inventory purchased at previous rates. He maintained that commercial bank loans carry fixed interest rates, leaving operators vulnerable when market prices drop mid-transit.

Oil and gas expert Toyin Akinosho told Arise News on Tuesday that while consumers should rightfully benefit from lower global crude costs, the local market often lags because existing inventories must clear first. Akinosho also noted that continued reliance on imported petrol remains necessary because the Dangote refinery has faced operational challenges with its Residue Fluid Catalytic Cracking unit, preventing it from running at full capacity to meet total domestic demand.

Supporting the supply context, NMDPRA data analyzed by Dailytrust showed that Nigeria imported ₦12.8 trillion worth of petrol between August 2024 and October 2025. During the same fifteen-month window, local supply totaled 7.2 billion litres entirely from the Dangote refinery. Concurrently, Aliko Dangote publicly called for an investigation into the leadership of the NMDPRA during a press conference on Sunday, accusing the regulatory body of economic sabotage and unfair treatment, as covered by Tribune Online.