The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has dismissed claims that the Nigerian National Petroleum Company Limited (NNPCL) is encroaching on its authority by setting the price of petrol sourced from Dangote Refinery.
The NMDPRA stated that the agreement between the Dangote Refinery and NNPCL is a willing seller and willing buyer arrangement.
The Chief Executive Officer of NMDPRA, Engr. Farouk Ahmed, explained that under the Petroleum Industry Act (PIA) 2021, market forces determine the price of petrol in Nigeria, following the deregulation of the sector. Ahmed clarified that NMDPRA’s role is to ensure that no party exploits the market or consumers.
It was earlier reported that after NNPCL lifted petrol from Dangote Refinery as the sole buyer, the company released a price template.
This template indicated an average price of ₦950.22 per litre in Lagos State, and ₦1,019.22 per litre for Borno State, which is at the extreme end of the supply route.
This led to concerns among stakeholders and observers, with some suggesting that NNPCL had taken over one of NMDPRA’s core functions. However, Ahmed, in an interview with *Daily Trust*, said that such concerns were unnecessary.
Ahmed emphasized that the pump prices announced by NNPCL apply only to its own outlets across Nigeria and that other marketers are free to set their own prices.
He further explained that the transaction between NNPCL and Dangote Refinery is based on market principles, adding that while some may question the high prices due to supply issues, the situation is expected to improve with more participants entering the market.
He also noted that calls for NMDPRA to regulate prices would contradict the deregulated nature of the sector, potentially leading to more problems.