FG Orders NMDPRA to Monitor Petrol Prices, Warns Marketers Against Exploiting Nigerians

The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of fuel prices across the country and ensure petroleum marketers do not exploit consumers through arbitrary increases in the pump price of petrol.

The directive was issued by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.

Speaking at the event, Lokpobiri said that although Nigeria’s downstream petroleum sector has been fully deregulated, operators must not use deregulation as a justification for imposing unfair or excessive prices on consumers.

The minister noted that many Nigerians expected petrol prices to decline following the recent drop in global crude oil prices and the easing of geopolitical tensions in the Middle East.

According to him, the reduction in international crude oil prices should ordinarily be reflected in the local pump price of Premium Motor Spirit (PMS), commonly known as petrol.

“Following the de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened,” he said.

Lokpobiri stressed that while market forces are expected to determine fuel prices under the deregulation policy, the NMDPRA still has a statutory responsibility to prevent market abuse, anti-competitive practices and excessive profiteering.

He explained that the Petroleum Industry Act (PIA) provides the regulator with adequate legal authority to ensure fairness within the downstream sector while protecting consumers from exploitation.

The minister also expressed concern over fuel measurement practices at filling stations across the country, urging the authority to strengthen inspections to ensure motorists receive the exact quantity of fuel they pay for.

“Beyond allowing prices to be determined by market forces, the question is: what is the regulator doing to ensure that consumers receive the correct quantity of product? When someone pays for 10 litres of Premium Motor Spirit, they should receive exactly 10 litres, not less,” he stated.

Lokpobiri further observed that Nigeria’s downstream petroleum industry demonstrated resilience during the recent geopolitical tensions involving the United States and Iran, noting that deregulation and increased domestic refining capacity helped the country avoid widespread fuel shortages.

He described the Petroleum Industry Act as a landmark reform that has laid the foundation for transforming Nigeria’s oil and gas sector but added that sustained investment would depend on consistent and transparent implementation of the law.

According to the minister, investors are interested not only in favourable policies but also in a stable and predictable regulatory environment that inspires confidence over the long term.

He therefore urged legal advisers and regulatory officials in the petroleum sector to prioritise investment promotion and business growth rather than creating unnecessary bureaucratic bottlenecks.

“We will not be judged by the number of regulations we produce or the volume of guidelines we issue. We will be judged by the investments we attract, the businesses we enable, the jobs we create and the value we leave behind for future generations,” he said.

Earlier, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar, said transparency, regulatory certainty and investor confidence have become essential to the sustainable growth of Nigeria’s petroleum industry.

He explained that while regulatory compliance remains important, creating a stable and predictable operating environment is critical to attracting local and foreign investment.

Also speaking at the forum, the Secretary and Legal Adviser of NMDPRA, Joseph Tolorunse, emphasised that regulatory certainty, stable fiscal policies and fewer policy reversals would strengthen Nigeria’s competitiveness in the global oil and gas industry.

Meanwhile, petrol prices continued to witness slight adjustments across major fuel depots in Lagos, Port Harcourt, Calabar and Warri as marketers respond to changing market conditions and product supply dynamics.