NMDPRA Says It Cannot Fix Petrol Pump Prices as PMS Hits N1,450 per Litre
By Aboki Forex —
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it has no legal power to fix petrol pump prices, even as Premium Motor Spirit (PMS) costs climb sharply across the country.
In a statement released on September 19, 2026, the regulator said Section 205(1) of the Petroleum Industry Act (PIA) requires wholesale and retail petroleum product prices to be determined under free-market conditions.
No pricing template from the regulator
The NMDPRA said it does not set pump prices or issue pricing templates to fuel retailers.
"The Authority does not fix pump prices or issue administrative price templates," the regulator said.
It added that government intervention in petroleum pricing is only permitted under Sections 205(2) to 205(4) of the PIA, and only where a market failure has been formally declared. No such declaration has been made.
Despite its limited role on pricing, the authority said deregulation does not excuse operators from meeting regulatory and fair-trade obligations.
Crackdown on gouging and smuggling
The NMDPRA said it is ramping up collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to watch for price-gouging, collusion, under-dispensing and compromised product quality.
It is also working alongside the Nigeria Customs Service and security agencies to tighten surveillance along border corridors and curb petroleum product smuggling.
The regulator said dedicated reporting channels are being set up so consumers and industry stakeholders can flag irregular pricing and other exploitative conduct for investigation.
What motorists are paying
The clarification comes as fuel costs continue to climb in major cities. Checks showed filling stations selling petrol at between N1,400 and N1,450 per litre.
In Lagos, prices at most stations ranged from N1,400 to N1,430 per litre, while MRS stations dispensed at N1,395 per litre. Abuja stations were selling at between N1,400 and N1,450 per litre.
Dangote Refinery had earlier reduced the price of Automotive Gas Oil (diesel) at its gantry by N100 to N1,600 per litre, raising expectations of lower transport, logistics and manufacturing costs.
Analysts said the price reduction could intensify competition in Nigeria's downstream petroleum market, particularly as depot prices have remained relatively high in recent weeks. Diesel has recently sold for between N1,660 and N1,670 per litre at major Lagos depots, including African Terminal, Sahara, Ibeto and Duport.