NMDPRA Denies NNPCL overstepping in dangote refinery petrol pricing
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has refuted claims that the Nigerian National Petroleum Company Limited (NNPCL) has been allowed to overstep its regulatory authority by setting the price of petrol sourced from the Dangote Refinery.
Responding to concerns raised by industry stakeholders, NMDPRA’s Chief Executive Officer, Engr. Farouk Ahmed, clarified that the pricing arrangement between NNPCL and Dangote Refinery follows a “willing seller, willing buyer” model, in line with the deregulated nature of the petroleum sector as mandated by the Petroleum Industry Act (PIA) of 2021.
Ahmed emphasized that since the government has deregulated the sector, petrol prices are now determined by market forces. He explained that NMDPRA’s role is to ensure no one exploits the market or takes advantage of consumers, rather than setting fuel prices.
The issue gained attention after NNPCL, the sole buyer of petrol from Dangote Refinery, released a price template that indicated an average price of ₦950.22 per litre in Lagos and ₦1,019.22 per litre in Borno, Nigeria’s northernmost state. The price difference, attributed to supply chain distances, sparked concerns that NNPCL was encroaching on NMDPRA’s regulatory functions.
However, Ahmed clarified that NNPCL’s price announcement was only applicable to its own outlets, and other fuel marketers are not obligated to adopt the same pricing. He dismissed the controversy, describing it as unnecessary, and reiterated that the transaction was purely market-driven.
“But in a situation whereby some Nigerians expect us to regulate the price, it then means that the sector has not been deregulated; and it means we would continue to have problems,” Ahmed said, explaining the importance of allowing market forces to determine pricing, especially as more players enter the sector.
The statement from NMDPRA underscores the ongoing adjustments within Nigeria’s oil and gas sector as it continues its transition under the PIA framework.
