The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it lacks the statutory power to determine petrol pump prices, even as it announced stronger surveillance against price-gouging and other exploitative conduct following the latest rise in Premium Motor Spirit (PMS) prices.
In a statement issued on September 19, 2026, the regulator outlined the legal framework guiding its operations and the consumer-protection measures it is deploying under a fully deregulated petroleum market. Nairametrics checks indicate that retail outlets in major cities are currently selling PMS at between N1,400 and N1,450 per litre.
Citing Section 205(1) of the Petroleum Industry Act (PIA), the authority noted that wholesale and retail prices of petroleum products are meant to be set under unrestricted free-market conditions. It stated: "The Authority does not fix pump prices or issue administrative price templates." Sections 205(2) to (4) of the PIA, it added, only permit government intervention in pricing where there is formal evidence of a declared market failure, and no such failure has been declared. The regulator also referenced Section 216 of the PIA, which gives it powers to check anti-competitive practices, price-fixing and abuse of market dominance.
On enforcement, the NMDPRA said deregulation does not free operators from regulatory obligations or fair-trade standards. It is collaborating with the Nigeria Customs Service and other security agencies to tighten surveillance along border corridors and curb illegal diversion and smuggling of petroleum products. The authority is also working with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the market for price-gouging, collusion, under-dispensing and compromised product quality. Dedicated reporting channels are being opened for members of the public and industry stakeholders to flag irregular pricing for investigation and enforcement.
The price movement follows sustained pressure in global energy markets. After the breakdown of talks over the Strait of Hormuz, international oil prices remained above $100 per barrel last week, raising costs for crude feedstock, refined products and logistics in Nigeria. Checks showed most Lagos filling stations dispensing petrol between N1,400 and N1,430 per litre, while MRS stations sold at N1,395 per litre. In Abuja, pump prices ranged from N1,400 to N1,450 per litre. Domestic fuel prices have climbed sharply from about N830 per litre before the Middle East crisis earlier this year to above N1,300 in many parts of the country.
