The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned petroleum marketers against selling Premium Motor Spirit (PMS), popularly known as petrol, above prevailing market realities, declaring that operators found engaging in price gouging or profiteering will face regulatory sanctions.
The warning comes amid growing calls for pump prices to reflect the recent decline in international crude oil prices following the easing of tensions in the Middle East. Brent crude has fallen from the highs recorded during the U.S.-Iran conflict to around the low $70 per barrel range, prompting expectations of lower petrol prices across Nigeria.
In a statement issued on Wednesday, NMDPRA spokesperson, George Ene-Ita, said the Authority is closely monitoring petroleum depots and retail outlets nationwide to ensure that pump prices remain cost-reflective, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
According to him, oil marketing companies have been cautioned against profiteering and arbitrary pricing practices, warning that any operator found violating regulatory provisions would be sanctioned.
"The Authority is aware of the decline in global crude oil prices and expects petroleum product prices to reflect prevailing market conditions. Depots and retail outlets are being monitored, and regulatory sanctions will be applied where necessary," Ene-Ita stated.
He added that the Authority is collaborating with security agencies and the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen market surveillance, prevent consumer exploitation and ensure Nigerians continue to enjoy adequate and reliable supplies of petroleum products.
The latest directive follows a similar warning issued earlier this week by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who urged regulators to ensure that deregulation does not become an avenue for excessive profiteering.
IPMAN National Publicity Secretary, Chinedu Ukadike had earlier said that "If they try to enforce price control, marketers will shut down filling stations nationwide. You cannot claim to operate a deregulated market and at the same time dictate the price at which products should be sold. Before accusing marketers of profiteering, government should first determine the actual cost at which products were purchased".
Speaking in Abuja on Monday, Lokpobiri noted that although petrol pricing is now determined by market forces under the deregulated regime, regulators still have a statutory responsibility under the PIA to protect consumers from unfair pricing practices.
The minister observed that with the de-escalation of hostilities between the United States and Iran and the subsequent decline in crude oil prices, Nigerians reasonably expect corresponding reductions in petrol prices. He, however, maintained that while market forces would ultimately determine pump prices, regulatory oversight remains essential to prevent market distortions and abuse.
Lokpobiri also reiterated that the deregulation policy has significantly improved fuel availability nationwide, ending the era of persistent fuel scarcity and supporting the emergence of new refining projects, including the Dangote Petroleum Refinery and other domestic refining investments.
The renewed warnings from both the Federal Government and the NMDPRA come as consumers continue to demand faster adjustments in pump prices, while regulators intensify efforts to ensure that the benefits of lower crude oil prices are reflected across Nigeria's downstream petroleum market.