THE Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the recent fluctuations in fuel pump prices across Nigeria are a direct consequence of market dynamics under the country’s deregulated downstream petroleum sector.
The authority explained that the variations in petrol prices currently being witnessed nationwide reflect the realities of supply and demand within the deregulated system rather than regulatory intervention.
The spokesperson of the authority, George Ene-Ita, stated this while speaking with journalists in Abuja on Sunday as he reacted to the latest increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol.
According to him, the recent rise in fuel prices has been influenced by global market pressures, particularly the ongoing tensions and instability in the Middle East, which have affected crude oil prices and the global energy market.
News Point Nigeria reports that many motorists in Abuja have expressed frustration and concern over the latest surge in petrol prices, which has pushed the cost of the commodity close to the ₦1,000 per litre mark in several retail outlets.
Until recently, petrol was being sold at filling stations between ₦875 and ₦880 per litre in parts of the Federal Capital Territory.
However, current market trends show that several independent petroleum marketers are now dispensing the product at prices ranging between ₦960 and ₦1,000 per litre or even higher in some locations.
Outlets operated by Nigerian National Petroleum Company Limited (NNPC Ltd) are also selling petrol at approximately ₦960 per litre in Abuja and some other parts of the country.
The development has triggered widespread debate among Nigerians, with many questioning the justification for the increase and raising concerns about the broader economic impact on transportation costs, household expenses and business operations.
Responding to these concerns, Ene-Ita insisted that the fluctuations are a natural outcome of Nigeria’s shift to a deregulated downstream petroleum regime.
According to him, the government no longer fixes fuel prices as was previously the case when subsidies were in place.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration,” he said.
“Therefore, pump price vagaries are purely as a result of market dynamics.”
The NMDPRA spokesperson explained that within a deregulated framework, petroleum product prices are determined by prevailing market conditions, including international crude oil prices, foreign exchange rates, supply logistics, and competition among marketers.
He noted that the policy direction adopted by the government is designed to allow market forces to determine fuel prices while encouraging efficiency, competition and investment in Nigeria’s oil and gas sector.
According to him, the deregulation of the downstream petroleum industry is also expected to attract more private sector participation, improve supply stability and stimulate infrastructure development within the sector.
For many Nigerians, however, the immediate concern remains the rising cost of petrol and its ripple effects on transportation, food prices and the overall cost of living.