The Nigerian Midstream and Downstream Petroleum Regulatory Authority has warned oil marketers against arbitrary increases in the pump prices of petroleum products, insisting that prices must remain cost-reflective in line with the provisions of the Petroleum Industry Act (PIA) 2021.
In a statement issued on Wednesday by its Head of Media and Public Relations, George Ene-Ita, the regulator said it has intensified monitoring of petroleum depots and retail outlets nationwide and will sanction any marketer found engaging in profiteering or price gouging.
The authority said it had taken note of the recent decline in global crude oil prices and was committed to ensuring that the benefits of changing market conditions are reflected in domestic fuel prices.
“Oil Marketing Companies have been cautioned against price gouging and profiteering. Depots and retail outlets are being monitored, and regulatory sanctions will be applied where applicable,” the statement said.
The NMDPRA added that it is working with security agencies and the Federal Competition and Consumer Protection Commission to protect consumers and ensure fair pricing across the downstream petroleum sector.
The warning comes two days after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, directed the regulator to strengthen oversight of the downstream industry and ensure Nigerians benefit from falling global crude oil prices.
Lokpobiri said the deregulation of the downstream sector was intended to promote competition and efficiency, not create opportunities for excessive profiteering. He stressed that while the government would not fix fuel prices, marketers must ensure price adjustments accurately reflect movements in international crude oil prices and foreign exchange rates.
The regulator’s latest directive follows concerns from consumers and industry stakeholders that retail fuel prices have remained high in some parts of the country despite sustained declines in global crude oil prices. Under the Petroleum Industry Act, fuel prices are determined by market forces, while regulators are empowered to prevent anti-competitive practices and protect consumers.
