Why petrol prices keep shifting: NMDPRA lists supply chain factors
By Aboki Forex —
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has blamed fluctuating petrol pump prices on supply chain factors in the deregulated market. George Ene-Ita, head of public affairs, spoke with the News Agency of Nigeria in Abuja on Sunday, September 6, 2026.
What drives price changes
Ene-Ita listed crude oil procurement, single-source domestic refining, the time lag between offshore crude sourcing and refinery delivery, and the gap between ordering imported fuel cargoes and their arrival at Nigerian ports as key contributors to price movement.
He said: "These factors include single source domestic refining, sourcing of crude oil as feedstock, time lag between when crude is sourced offshore and when it eventually arrives the refinery."
"They also include time lag between when PMS cargoes are ordered and when they eventually arrive our ports for subsequent inland distribution and supply in the case of imported fuel."
Other costs at the pump
Beyond crude and logistics, Ene-Ita said landing costs, transportation expenses, and marine and inland taxes tied to moving petroleum products also feed into the final price consumers pay. He acknowledged the difficulty of isolating one cause.
"This issue is knotty in the sense that there are various factors involved," he said.
Regulation and the road ahead
The NMDPRA spokesperson confirmed that refinery pricing templates and ex-depot prices are outside the scope of regulation under the current framework. He argued that a stronger domestic refining sector could eventually ease pricing pressure.
"Perhaps when the domestic refining ecosystem becomes more robust, competitive and sustainable, the issues regarding pricing will become clearer and more beneficial to consumers," Ene-Ita said.
He added that the authority is working with the Federal Competition and Consumer Protection Commission and other agencies to keep prices fair at the point of sale.
The explanation comes as Nigerians continue to face unpredictable pump prices after the full removal of petrol subsidies, a policy shift that has added to broader cost-of-living pressures.