Abuja: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clarified that fluctuations in fuel pump prices are driven by market dynamics, as Nigeria’s downstream sector is no longer regulated by government pricing.
The authority’s spokesperson, George Ene-Ita, spoke to journalists in Abuja. He reacted to the recent increase in fuel pump prices linked to the ongoing Middle East crisis.
Many motorists in Abuja have expressed concern and dissatisfaction over the recent hike in the price of Premium Motor Spirit (PMS), also known as fuel, which was previously sold at between N875 and N880 per litre.
Currently, independent marketers are selling fuel at between N960 and N1,000 per litre, while outlets of the Nigerian National Petroleum Company Limited are selling at about N960 per litre.
Nigerians have expressed concern about the justification for the increase in pump price and the implications for the country.
Ene-Ita said the variations in pump prices across the country were not due to regulatory interference but were driven by market forces.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration.
“Therefore, pump price vagaries are purely a result of market dynamics,” he said.
He explained that in a deregulated market, fuel prices change directly with current market conditions. The reaction aimed to allow market forces to determine prices while encouraging competition, efficiency, and increased investment in Nigeria’s downstream oil and gas sector.
