Petrol Price Fluctuation Driven by Market Forces, Not Government Control — NMDPRA
Abuja, Nigeria — The (NMDPRA) has said recent fluctuations in the pump price of petrol across Nigeria are the result of prevailing market forces in a deregulated petroleum sector and not government intervention.
The clarification was provided by the agency’s spokesman, , during an interview with the (NAN) on Sunday while addressing public concerns over rising petrol prices in several parts of the country.
According to the regulator, Nigeria now operates a deregulated downstream petroleum market, where prices of (PMS), commonly known as petrol, are determined by supply and demand dynamics rather than by government-fixed pricing.
Market Factors Behind Price Changes
The authority explained that several economic factors influence petrol prices in the current framework. These include global crude oil prices, foreign exchange rates, logistics costs, supply levels, and operational decisions by market participants within the petroleum distribution chain.
Petrol prices have recently increased in several Nigerian cities, with pump prices reported at about ₦1,040 per litre in Lagos and around ₦1,080 per litre in Abuja.
The increase coincides with rising global oil prices triggered by geopolitical tensions in the Middle East involving the United States, Israel and Iran, developments that have unsettled global energy markets.
International market data showed crude oil prices climbing to about $91 per barrel late last week, adding pressure to refined product costs in several importing countries, including Nigeria.
Regulator Says It Does Not Fix Prices
Mr Ene-Ita stressed that under the current policy framework, the NMDPRA does not determine retail petrol prices.
He noted that variations in pump prices across different states and filling stations are normal within a competitive market environment where marketers make independent commercial decisions.
“The regulatory authority does not fix petrol prices,” he said, adding that the agency’s responsibility is to ensure compliance with industry standards, transparency in distribution, and prevention of anti-competitive practices.
Deregulation and Industry Reform
The NMDPRA said the market-driven pricing system was introduced to encourage private investment, improve operational efficiency and strengthen product availability nationwide.
Industry officials believe the policy could attract more participants into the downstream sector while supporting the expansion of storage infrastructure, distribution networks and refining capacity.
Nigeria’s downstream petroleum market has undergone significant restructuring since the enactment of the in 2021, a sweeping reform that reshaped the regulatory architecture of the oil and gas sector.
The legislation created the NMDPRA and the , replacing earlier institutions responsible for petroleum pricing and regulation.
End of the Subsidy Era
Before the reform, petrol prices in Nigeria were largely determined through a government subsidy system that kept pump prices artificially low for decades.
Under that arrangement, the government paid the difference between international market prices and domestic retail prices, a policy that imposed heavy fiscal costs and triggered repeated national debates about its sustainability.
Successive administrations attempted to reform the subsidy regime due to its impact on public finances and distortions in the petroleum supply chain.
With the implementation of the Petroleum Industry Act, Nigeria moved toward a market-based pricing system, leaving regulators to supervise the sector rather than set prices.
The NMDPRA said the recent price adjustments reflect these market realities and urged consumers to understand that fluctuations are now part of the structure governing petroleum products in the country.
The authority added that its priority remains ensuring transparency in the downstream market, product quality assurance, and protection of consumers from unfair practices.