The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed has clarified that the price of petroleum products in Nigeria is no longer determined by the government. Instead, it now reflects prevailing market forces.
He noted that deregulation of the downstream sector has restored investor confidence, mainly due to improved transparency and competition across the value chain.
“There’s ample interest in the sector now because of the confidence and transparency deregulation has brought,” Ahmed stated.
Prices Tied to Competition and Global Events
According to the NMDPRA CEO, prices of petroleum products rise or fall in response to competitive pressures and international geopolitical developments. These dynamics, he said, drive the market-based fluctuations now seen at filling stations.
“Prices go up or down depending on competition or global tensions. We’re already seeing different players adjust their pump prices,” he said.
Ahmed emphasized that this price variation is a natural consequence of deregulated markets where multiple suppliers operate.
Midstream Investment, CNG Projects Gaining Traction
The NMDPRA boss also revealed that the agency is supporting significant investment in Nigeria’s midstream segment, particularly in Compressed Natural Gas (CNG) infrastructure. This aligns with the federal government’s energy transition goals.
“We’re backing the government’s CNG push. Midstream investment is picking up, which supports broader availability and usage,” he said.
He explained that the value chain begins with upstream production and flows into midstream infrastructure and distribution, before pricing comes into play downstream.
Fuel Availability, Improved Logistics, and Eliminating Queues
Farouk Ahmed highlighted that over the past year, fuel availability has improved substantially, and queues have largely disappeared in major cities.
“In the last 12 months, queues have vanished in most places. That’s due to improved logistics, better supply, and active market competition,” he said.
He added that NMDPRA would continue implementing strategies to ensure consistent fuel availability nationwide, while also encouraging investment and competition to stabilize the market.