The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has addressed concerns regarding the Nigerian National Petroleum Company Limited’s (NNPCL) role in setting petrol prices from the Dangote Refinery. NMDPRA clarified that the pricing structure is based on a “willing buyer, willing seller” agreement, following the full deregulation of the petroleum sector under the Petroleum Industry Act (PIA) of 2021.
NMDPRA CEO Engr. Farouk Ahmed explained that market dynamics now determine petrol prices in Nigeria. He stressed that the authority’s role is to ensure no exploitation of consumers, while the prices announced by NNPCL are specific to its outlets. Concerns arose after NNPCL set prices at ₦950.22 per litre in Lagos and ₦1,019.22 in Borno, raising fears of price manipulation. However, Ahmed assured that independent marketers are free to set their own prices.
While acknowledging the high prices due to supply shortages, Ahmed expressed optimism that competition will increase and prices will stabilize as more players enter the market.
