NMDPRA Explains Why Government Can’t Stop Petrol Prices from Rising
- NMDPRA says fuel price fluctuations are driven by market dynamics under Nigeria’s deregulated petroleum sector
- Petrol previously sold between N875 and N880 per litre but now sells above N1,000 in most cities in the country
- NMDPRA says the government no longer fixes fuel prices under the deregulated system, aimed at promoting competition
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said fluctuations in petrol pump prices across Nigeria are a result of market dynamics under the country’s deregulated downstream petroleum sector.
Source: Getty Images
The authority’s spokesperson, George Ene-Ita, stated this in an interview with the News Agency of Nigeria in Abuja while reacting to the recent increase in fuel prices linked to the ongoing crisis in the Middle East.
According to him, variations in pump prices are largely determined by supply and demand forces rather than direct regulatory intervention.
Nigerians react to recent petrol price hike
Motorists in Abuja have recently expressed concerns over the rising price of Premium Motor Spirit (PMS), commonly known as petrol.
Before the latest adjustment, petrol sold between N875 and N880 per litre in many locations.
However, checks show that independent marketers now sell the product between N960 and N1,000 per litre or higher in some areas. Retail outlets operated by the Nigerian National Petroleum Company Limited (NNPC) currently sell petrol at about N960 per litre.
The development has raised questions among Nigerians about the justification for the increase and its impact on the economy.
NMDPRA explains deregulated pricing system
Responding to the concerns, Ene-Ita explained that Nigeria has operated a fully deregulated downstream petroleum sector since the beginning of the current administration.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. Therefore, pump price vagaries are purely as a result of market dynamics,” he said.
He added that under the deregulated framework, petroleum product prices respond to prevailing market realities, including supply conditions and global crude oil prices.
According to the spokesperson, the policy aims to allow market forces to determine prices while encouraging competition, operational efficiency, and greater investment in Nigeria’s downstream oil and gas industry.
Source: Getty Images
Dangote refinery, imports overshadow modular refineries
Legit.ng earlier reported that despite efforts to boost domestic refining, larger facilities such as the Dangote Petroleum Refinery continue to dominate diesel supply. The Dangote refinery supplied 5.6 million litres per day in November, 5.8 million litres per day in December, and 10.9 million litres per day in January 2026, significantly higher than the combined output of modular refineries. Nigeria also relied heavily on diesel imports during the period.
In contrast, modular refineries supplied an average of 2.37% of diesel demand from November 2025 to January 2026. Only three of the five listed modular refineries, namely: Waltersmith Refinery, Edo Refinery, and Aradel Refinery, were operational during the period.
Diesel consumption across Nigeria averaged about 17 million litres per day, far exceeding modular output. CORAN has called for improved crude access and funding support to help modular refineries scale operations.
Source: Legit.ng
