KEY POINTS
- NMDPRA says petrol price fluctuations are due to market forces under Nigeria’s deregulated petroleum sector.
- Global oil market tensions, especially in the Middle East, are contributing to rising petrol prices in Nigeria.
- Pump prices are nearing ₦1,000 per litre, raising concerns about higher transport costs, food prices, and living expenses
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has explained that the recent fluctuations in petrol pump prices across Nigeria are the result of market forces under the country’s deregulated downstream petroleum sector.
According to the regulatory body, the variations currently being observed nationwide are largely driven by supply and demand conditions rather than government intervention. This means petrol prices are now influenced by prevailing economic realities within Nigeria and in the global energy market.
Speaking with journalists in Abuja on Sunday, the spokesperson of the NMDPRA, George Ene-Ita, clarified that the government no longer fixes petrol prices as it did during the era of petrol subsidies. Instead, market conditions now determine how much motorists pay at filling stations.
Global Oil Market Pressures Impact Local Prices
Ene-Ita noted that the latest increase in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, is partly linked to developments in the global energy market.
He pointed out that rising tensions and instability in the Middle East have pushed up international crude oil prices, which in turn affects the cost of refined petroleum products worldwide, including those imported or produced for the Nigerian market.
As a result, fluctuations in global oil prices and exchange rates directly impact the retail price of petrol in Nigeria.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration,” Ene-Ita said.
“Therefore, pump price vagaries are purely as a result of market dynamics.”
In recent days, motorists in the Federal Capital Territory (FCT) and other parts of the country have expressed frustration over the sharp rise in petrol prices.
Only a few weeks ago, petrol was sold between ₦875 and ₦880 per litre at many filling stations in Abuja. However, current market trends show that independent marketers are now selling the product for between ₦960 and ₦1,000 per litre, with some stations charging even higher.
Retail outlets operated by the Nigerian National Petroleum Company Limited (NNPC Ltd) are also selling petrol at around ₦960 per litre in Abuja and other cities.
