The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has explained that petroleum product pricing in the downstream sector is governed by the unrestricted free market provisions of the Petroleum Industry Act (PIA). The agency acknowledged the financial pressure caused by the recent increase in petrol prices but stated that its mandate is to regulate the market, protect consumers, and ensure fair competition rather than administratively determine prices. Section 205(1) of the PIA 2021 provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions. Petrol prices have surged to as much as N1,500 per litre across several regions of Nigeria, primarily due to a sharp rally in global crude oil benchmarks, which have traded past $100 per barrel.
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