The Nigerian Midstream and Downstream Petroleum Regulatory Authority has warned oil marketers against profiteering and arbitrary increases in the pump prices of petroleum products.
It insisted that prices must be cost-reflective in line with the provisions of the Petroleum Industry Act 2021.
The warning comes barely two days after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the 2026 NMDPRA General Counsel and Legal Advisers Forum, directed the authority to intensify surveillance across the downstream sector and ensure that Nigerians benefit from the recent decline in global crude oil prices.
The regulator, in a statement issued on Wednesday, by its Head of Media and Public Relations, George Ene-Ita, said it had commenced monitoring activities at depots and retail outlets across the country and would not hesitate to sanction marketers found engaging in price gouging.
The statement, titled, ‘Pump Prices of Petroleum Products Must Be Cost Reflective’, noted that the authority had taken cognisance of the downward movement in international crude prices and was committed to ensuring that the benefits of market realities are reflected in domestic petroleum product prices.
It stated, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority notes the global drop in crude oil prices and wishes to assure the Nigerian public that pump prices of petroleum products must be cost-reflective, in accordance with the Petroleum Industry Act (2021).
“Oil Marketing Companies have been cautioned against price gouging and profiteering. Depots and retail outlets are being monitored, and regulatory sanctions will be applied where applicable.
“The Authority is working with security agencies and other critical stakeholders, including the Federal Competition and Consumer Protection Commission, to guarantee consumer protection.
“NMDPRA reassures the public of its commitment to monitoring the midstream and downstream sector and ensuring adequate and reliable supply of petroleum products nationwide.”
The latest warning by the regulator follows concerns by consumers and industry stakeholders that despite a sustained decline in crude oil prices in the international market, retail fuel prices in some parts of the country have remained elevated.
On Monday, Lokpobiri had directed the NMDPRA to strengthen its oversight functions and ensure that no operator exploits Nigerians through unjustifiable pricing practices.
The minister said the deregulation of the downstream petroleum sector was not intended to create opportunities for excessive profiteering but rather to encourage competition, efficiency and fair pricing.
He had also stressed that while government would not fix prices under the deregulated regime, market operators must act responsibly and ensure that price adjustments accurately reflect changes in international oil prices and foreign exchange conditions.
He said, “Pricing is also another issue, and I think that is one issue that I want this forum to deal with today. As part of the requirements of deregulation, prices have to be determined by market forces. When an NMDPRA has a unique responsibility, compounded by the PIA, to ensure not only that products are available but also that unnecessary profiteering is stopped. Yes, the market is definitely deregulated, but that doesn’t limit deregulation. I listen to discussions on television every day.
“They are calling me out. Mr. Lokpobiri should come and speak up. But I am not engaged in any press war with anybody. What is important is the reality of the situation in the industry. Primarily, market forces have to determine prices.
“But we also have a responsibility as a government all over the world to ensure that there is no profiteering. The PIA specifically vested government institutions, including the NMDPRA.”
The PUNCH reports that decline in global crude prices should ordinarily translate to lower ex-depot and retail prices of petroleum products, particularly as the country now relies significantly on local refining and a more liberalised downstream market.
The Petroleum Industry Act, signed into law in 2021, provides for a deregulated downstream petroleum sector where prices are determined by market fundamentals rather than government subsidies.
However, the law also empowers regulators to protect consumers against anti-competitive practices and market abuses.
The renewed intervention by the NMDPRA is expected to increase pressure on marketers to align pump prices with prevailing market conditions and could lead to fresh adjustments in fuel prices if the decline in crude oil prices persists.
