The Nigerian Midstream and Downstream Petroleum Regulatory Authority has identified reliance on limited domestic refining options, international crude procurement dynamics, and rising logistical expenses as the primary drivers behind ongoing petrol pump price fluctuations across the country.
Speaking on Sunday, the Head of Public Affairs for the authority, Mr. George Ene-Ita, clarified that Premium Motor Spirit pricing has been fully deregulated. As a result, terminal pump prices now directly reflect supply chain realities and international market pressures rather than fixed government tariffs.
Core Drivers of Price Volatility
The regulatory agency highlighted several operational bottlenecks and market factors that shape current retail pricing structures:
One being crude sourcing and production lag, hence Local refiners must purchase crude feedstock at prevailing global rates, introducing a significant lag between initial offshore procurement and final refinery processing.
Another is supply chain and distribution costs leading to shipping delays, inland freight expenses, and marine levies heavily impact landing costs for both imported and domestically processed fuel.
Added to this is the lack of refining competition as the current domestic supply framework relies heavily on single-source production, though market stability is expected to improve as more local refineries become operational.
Regulatory Oversight and Industry Recommendations
While the regulator does not enforce capped ex-depot or refinery gate prices under the current legal framework, Ene-Ita stated that the authority is actively partnering with the Federal Competition and Consumer Protection Commission to prevent market distortion and ensure fair pricing for consumers at retail outlets.
In response to rising pump prices, which currently range between ₦1,299 and ₦1,350 per litre in the Federal Capital Territory following ex-depot price adjustments by the Dangote Refinery, the Independent Petroleum Marketers Association of Nigeria has called for targeted policy support.
IPMAN President, Maigandi Garima, urged the Federal Government to establish a predictable crude oil pricing mechanism for local refineries during periods of heightened international market volatility. Garima emphasized that offering discounted or stabilized crude feedstock to domestic processors would lower production costs and reduce financial pressure on Nigerian consumers without representing a return to direct fuel subsidies.
