NMDPRA Faults Crude Sourcing, Single Refinery, Logistics For Petrol Price Volatility
By Aboki Forex —
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says petrol price swings are driven by crude oil sourcing, single-source domestic refining, logistics and transportation costs. Head of Public Affairs George Ene-Ita said this on Sunday, September 6, 2026, in an interview with the News Agency of Nigeria (NAN) in Abuja.
Ene-Ita described the issues behind the persistent price changes as complex, stressing that petrol prices are fully deregulated and therefore open to market volatility.
What NMDPRA Is Saying
According to Ene-Ita, the cost of sourcing crude oil as feedstock and the time lag between crude procurement and its arrival at refineries are built into product pricing. Marine and inland taxes linked to the movement and supply of petroleum products are also part of the price.
“This issue is knotty in the sense that there are various factors involved,” he said. “Pump price petrol has been completely deregulated. And if this is the case, it also means that all volatilities associated with supply have to be factored in.”
“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.”
Ene-Ita added that transportation, landing costs, marine and inland taxes affect petrol prices. He said a more robust, competitive and sustainable domestic refining ecosystem could make pricing clearer and more beneficial to consumers.
He also confirmed that refinery pricing templates and ex-depot prices are not regulated under the current framework. NMDPRA, he said, is working with stakeholders and the Federal Competition and Consumer Protection Commission (FCCPC) to ensure price equilibrium and parity at the last mile.
Current Prices And Marketer Pressure
The pump price of petrol in Lagos is now around N1,310 per litre, compared with between N1,075 and N1,135 per litre in early July. Motorists and oil marketers have expressed concern that the rise has worsened hardship and squeezed profit margins.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Federal Government to intervene in crude oil pricing for domestic refining. IPMAN President Alhaji Maigandi Garima said higher international crude prices raise production costs for refiners, who then pass the burden to the market. He called for government action to reduce the cost of crude supplied to domestic refineries during periods of international market volatility.
Demand Drops As Costs Bite
In March this year, Nairametrics reported that oil marketers were struggling with petrol price spikes linked to the Middle East conflict. Marketers said they needed much larger sums to buy a truckload of petroleum products but were earning low returns that could not cover high interest rates on bank loans.
They also reported a sharp drop in customer demand. Some buyers who previously purchased 20,000 litres or 10,000 litres were now buying about 2,000 litres or 1,000 litres. The combination of higher product costs, weaker demand and financing expenses is putting additional pressure on their businesses.
For Nigerian consumers and businesses, the repeated price swings mean higher transport and operating costs, weaker purchasing power, and tighter margins for marketers still struggling to stay afloat.