The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the Nigerian National Petroleum Company Limited (NNPCL) has not overstepped its authority by determining petrol prices from Dangote Refinery. The NMDPRA emphasized that the transaction between NNPCL and Dangote Refinery operates on a “willing buyer, willing seller” basis, in line with the deregulated market framework established by the Petroleum Industry Act (PIA) of 2021.
NMDPRA CEO Engr. Farouk Ahmed explained that the role of the regulatory body is to ensure that no market player exploits the system or consumers, and that the market forces determine petrol prices post-deregulation. He further addressed concerns about NNPCL’s recent price template, which indicated an average price of ₦950.22 per litre in Lagos and ₦1,019.22 per litre in Borno, clarifying that the prices only apply to NNPCL outlets and are not binding on other marketers.
Ahmed stressed that the high prices are a result of insufficient supply, and that competition from more players in the sector would eventually stabilize the market. He reaffirmed that regulation of prices would be contradictory to the deregulation policy.
