By Abubakar Yunusa
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said the recent increase in petrol pump prices across the country is a direct result of market forces in Nigeria’s deregulated petroleum sector.
The authority’s spokesperson, George Ene-Ita, stated this in an interview with the News Agency of Nigeria on Sunday.
Ene-Ita said the fluctuations in pump prices were not caused by regulatory interference but by supply and demand conditions in the market.
He noted that Nigeria had been operating a fully deregulated downstream petroleum regime since the current administration assumed office.
According to him, pump prices of petroleum products are now determined by prevailing market realities.
The development comes amid rising global crude oil prices triggered by escalating geopolitical tensions in the Middle East.
On Friday, crude oil climbed to about $91 per barrel as the conflict involving the United States, Israel and Iran intensified across the region.
Following the development, petrol pump prices in parts of Nigeria rose sharply on Saturday.
Checks showed that petrol sold for as high as N1,040 per litre in Lagos and about N1,080 per litre in Abuja.
Ene-Ita explained that the deregulation policy was introduced to allow market forces determine prices while encouraging competition and efficiency in the downstream oil and gas sector.
He added that the policy was also expected to attract more investment into Nigeria’s petroleum industry.
