The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it does not have the power to fix petrol pump prices under Nigeria’s deregulated downstream petroleum market, but has stepped up surveillance to prevent price-gouging and other exploitative practices.
The clarification came on September 19, 2026, as petrol prices climbed across major Nigerian cities, with retail outlets selling Premium Motor Spirit (PMS) at about N1,400 to N1,450 per litre.
In a statement, the regulator said its role under the Petroleum Industry Act (PIA) is to oversee the market and protect consumers while allowing prices to be determined by market forces.
The Authority cited Section 205(1) of the PIA, which provides for unrestricted free-market pricing of petroleum products.
It said this means the regulator does not set pump prices or issue administrative pricing templates. “The Authority does not fix pump prices or issue administrative price templates.”
The NMDPRA also referred to Sections 205(2) to (4), which allow government intervention in petroleum pricing only under exceptional circumstances where there is formal evidence of a declared market failure.
According to the regulator, no such market failure has been declared.
However, deregulation does not mean petroleum marketers can operate without regulatory oversight.
The Authority pointed to Section 216 of the PIA, which gives it powers to prevent anti-competitive practices, price-fixing and abuse of market dominance in the petroleum industry.
The NMDPRA said it is intensifying surveillance to identify and address practices that could unfairly increase the price consumers pay for petrol.
It is working with the Nigeria Customs Service and other security agencies to strengthen monitoring along border corridors and curb the illegal diversion and smuggling of petroleum products.
The regulator is also collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the market for possible price-gouging, collusion, under-dispensing and compromised product quality.
The Authority said it is also establishing dedicated reporting channels through which consumers and industry stakeholders can report suspected irregular pricing and other exploitative practices.
Such complaints, it said, will be subject to regulatory investigation and enforcement where violations are established.
