Petrol prices are approaching ₦1,500 per litre in parts of Nigeria, with motorists in several states facing sharp increases, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it does not determine the prices charged at filling stations.
The clarification comes amid growing pressure over the rising cost of Premium Motor Spirit (PMS), with the Nigeria Labour Congress (NLC) and petroleum marketers calling for government intervention as higher fuel costs continue to affect households, transport operators and businesses.
The PUNCH reported that petrol was selling for as much as ₦1,500 per litre in Kano, Yobe, Sokoto, Borno, Taraba and Zamfara states, while prices had also risen significantly in several other parts of the country.
In Yobe, some filling stations in Damaturu were selling petrol between ₦1,500 and ₦1,520 per litre. In Kano, prices ranged from ₦1,460 to ₦1,500 per litre across several stations in the metropolis.
Prices of up to ₦1,450 per litre were also recorded at some filling stations in Kaduna, while motorists buying from an NNPC Mega station in the Barnawa area paid ₦1,439 per litre.
The price increases have also affected transportation costs. In Kano, commercial tricycle operators reportedly raised fares by about 50 percent in some cases, with short-distance trips previously costing ₦200 rising to about ₦300.
Against this backdrop, the NMDPRA said petrol pricing operates under the deregulated framework established by the Petroleum Industry Act 2021 and is therefore determined by market conditions rather than a pump-price template issued by the regulator.
The Authority said Section 205(1) of the PIA provides for wholesale and retail petroleum product prices to be based on unrestricted free-market conditions. It added that it does not fix pump prices or issue administrative pricing templates.
According to the regulator, government intervention in petroleum pricing is restricted under Sections 205(2) to 205(4) to exceptional circumstances where there is formal evidence of a declared market failure. It said no such market failure has been declared.
The NMDPRA, however, stressed that deregulation does not remove its responsibility to enforce competition and consumer-protection rules across the downstream market.
It said Section 216 of the PIA empowers it to address anti-competitive practices, price-fixing and abuse of market dominance.
The Authority said it is working with the Federal Competition and Consumer Protection Commission under a memorandum of understanding to monitor practices including price-gouging, collusion, under-dispensing and compromised product quality.
It also plans to establish dedicated reporting channels through which consumers and industry stakeholders can submit complaints about irregular pricing and other exploitative practices for investigation and enforcement.
The regulator said it is further working with the Nigeria Customs Service and other security agencies to strengthen surveillance along border corridors and prevent the illegal diversion of petroleum products out of the country.
The latest price pressure followed an increase in Dangote Petroleum Refinery’s petrol gantry price from ₦1,265 to ₦1,350 per litre on September 12, representing an ₦85, or 6.7 percent, increase, according to The PUNCH.
The refinery had also increased its coastal price by 6.8 percent, while the latest adjustment represented its fourth upward review of the petrol gantry price since August 21.
The refinery’s gantry price had risen from ₦1,165 per litre on August 21 to ₦1,185, ₦1,200, ₦1,265 and eventually ₦1,350 over successive adjustments. The cumulative increase over the period was ₦185 per litre, or about 15.9 percent.
The higher depot-level price has been reflected in retail prices in parts of the country. The Dangote-backed MRS station in Alapere, Lagos, increased its pump price to ₦1,395 per litre, while Mobil sold at ₦1,385 on the same axis.
In Ogun State, Matrix filling station at Kara sold petrol at ₦1,360 per litre, while NNPCL stations in Ibafo dispensed the product at ₦1,380 per litre.
Petroleum marketers have warned that further increases in international crude oil prices could push petrol towards ₦2,000 per litre, particularly if the naira also weakens against the dollar.
IPMAN Publicity Secretary Chinedu Ukadike said international crude prices and the exchange rate remained major factors influencing domestic petroleum product prices. He called for government measures to reduce the effect of rising crude costs, including possible adjustments to charges associated with shipping and product distribution.
The NLC has also called for measures to cushion consumers from the impact of rising petrol prices, including wage support for workers and the sale of crude oil to local refineries in naira.
The union has separately raised concerns about the increasing influence of the Dangote refinery in the domestic petroleum market and called for greater competition through the revival of Nigeria’s state-owned refineries.
For the NMDPRA, however, the current pricing structure remains governed by the PIA’s free-market framework.
The Authority said its responsibility is to regulate market conduct, enforce applicable standards, promote fair competition and protect consumers, rather than determine the retail price of petrol.