FG to Investigate Petrol Pricing as Filling Stations Raise Pump Prices After Dangote Hike
- Dangote Petroleum Refinery raised its petrol ex-gantry price by N85 per litre, pushing some filling stations to adjust their pump prices
- The FCCPC and NMDPRA signed a Memorandum of Understanding in Abuja to strengthen oversight of the deregulated petroleum market
- The two agencies will look into price fixing, cartel behaviour, product withholding, under-dispensing and other anti-competitive practices
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's federal government is moving to tighten oversight of petrol pricing after filling stations in several parts of the country raised pump prices following a price adjustment by Dangote Petroleum Refinery.
The refinery increased its Premium Motor Spirit ex-gantry price from N1,265 to N1,350 per litre, a rise of N85 or about 6.7%, citing higher international crude oil prices.
Source: UGC
In response, some major filling station operators have adjusted their pump prices, with motorists now paying between N1,395 and N1,460 per litre in parts of the country.
FCCPC and NMDPRA sign oversight deal
To address concerns about market conduct, the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) signed a Memorandum of Understanding in Abuja.
BusinessDay reports that the agreement is designed to improve market surveillance, information sharing, and joint enforcement across the petroleum sector.
FCCPC Executive Vice Chairman Tunji Bello was clear that his commission does not set or approve pump prices in a deregulated market, but said it retains the power to act when business conduct breaches competition rules or harms consumers.
Bello said:
"As the FCCPC has consistently stated, it does not regulate or approve petroleum prices in a deregulated downstream market."
He added that the commission would pursue suspected cartel behaviour, price fixing, and any other conduct that undermines fair competition.
Under the agreement, the FCCPC and NMDPRA will share market intelligence and coordinate investigation and enforcement activities.
Bello said:
"FCCPC and NMDPRA will deepen information sharing, enhance market intelligence, coordinate enforcement activities, and establish clear mechanisms for collaboration."
NMDPRA outlines scope of joint work
NMDPRA Chief Executive Rabiu Abdullahi Umar said the agreement will extend oversight across the full petroleum value chain, covering refining, transportation, storage, wholesale, and retail operations, DailyTrust
Umar pointed to the Petroleum Industry Act of 2021 and the Federal Competition and Consumer Protection Act of 2018 as the legal basis for the two agencies working together, noting that their collaboration had been ongoing since 2022.
Umar said:
"Today, we translate that statutory mandate into an actionable operational framework."
Source: Getty Images
The agencies will sharpen procedures covering product metering, fuel quality monitoring, joint investigations, and consumer complaints.
Areas of particular focus include collusive pricing, product withholding, and anti-competitive market allocation.
Dangote wins as court gives order against NMDPRA
Earlier, Legit.ng reported that a Federal High Court in Lagos has barred the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down or interfering with operations at the Dangote Petroleum Refinery inside the Lekki Free Zone.
Justice Akintayo Aluko made the order on Monday while ruling on a motion ex parte marked FHC/L/CS/1174/26.
The application was filed and argued by counsel to Dangote Petroleum Refinery Nigeria Limited, led by Olawale Akoni and Abimbola Akeredolu, both Senior Advocates of Nigeria.
Source: Legit.ng
