The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it cannot fix petrol pump prices, but will step up surveillance against price-gouging and other exploitative practices amid the latest increase in Premium Motor Spirit (PMS) prices.

The Authority disclosed this on September 19, 2026, in a statement addressing the recent rise in petrol prices and the measures it is taking to protect consumers under the deregulated petroleum market.

The development comes as checks by Nairametrics show that petrol prices have increased across major Nigerian cities, with retail outlets now selling PMS between N1,400 and N1,450 per litre.

What they are saying

The NMDPRA said it issued the clarification to explain the statutory framework governing its operations and outline measures being taken to protect consumers amid the recent increase in petrol prices.

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Under Section 205(1) of the Petroleum Industry Act, wholesale and retail prices of petroleum products are to be determined under unrestricted free-market pricing conditions. The Authority said it therefore does not set pump prices or issue administrative pricing templates.

  • “The Authority does not fix pump prices or issue administrative price templates.”

The NMDPRA added that Sections 205(2)–(4) of the PIA limit government intervention in petroleum pricing to exceptional circumstances where there is formal evidence of a declared market failure.

According to the Authority, no such market failure has been declared.

  • It also pointed to Section 216 of the PIA, which empowers it to prevent anti-competitive practices, price-fixing and abuse of market dominance within the petroleum industry.

NMDPRA moves to curb price-gouging, smuggling

While maintaining that petrol prices are market-driven, the NMDPRA said deregulation does not exempt operators from regulatory requirements or fair-trade standards.

  • The Authority said it is working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors and curb the illegal diversion and smuggling of petroleum products.

It also said it is collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the market for price-gouging, collusion, under-dispensing and compromised product quality.

The NMDPRA added that it is opening dedicated reporting channels through which members of the public and industry stakeholders can report irregular pricing and other exploitative practices for regulatory investigation and enforcement.

Get up to speed

Following the breakdown of talks over the Strait of Hormuz, international oil prices remained above $100 per barrel last week, adding pressure to global energy markets.

  • The increase in global crude prices has also fed into Nigeria’s downstream petroleum market, where refiners and fuel suppliers face higher costs for crude feedstock, refined products and logistics.

Nairametrics checks showed that most filling stations in Lagos were dispensing petrol between N1,400 and N1,430 per litre, while MRS stations sold at N1,395 per litre. In Abuja, pump prices ranged between N1,400 and N1,450 per litre.

  • The latest adjustment represents another increase in domestic fuel prices, which have risen sharply from around N830 per litre before the Middle East crisis earlier this year to above N1,300 in many parts of the country.

NMDPRA had previously attributed petrol price volatility to factors including crude oil sourcing, domestic refining, logistics and transportation costs, noting that the downstream market is fully deregulated and subject to market forces.

What you should know

The latest increase in petrol prices has also pushed up transportation costs, with Nairametrics observing higher fares in some parts of Lagos as transport operators adjust to increased fuel expenses.

The rising cost of petrol has prompted calls from individuals and organisations for measures to reduce the pressure on households, workers and businesses.

  • In a recent press conference in Abuja, former Vice President and African Democratic Congress (ADC) presidential candidate Atiku Abubakar called on President Bola Tinubu to intervene to lower petrol prices.

Atiku argued that the President should be willing to adopt a government intervention even if the proposal originated from him, saying the priority should be reducing the burden on Nigerians.

  • The Nigeria Labour Congress (NLC) has also called on the Federal Government to introduce immediate wage awards for workers as higher petrol prices continue to raise transportation costs and worsen economic pressure.

NLC President Joe Ajaero said the increase in transport costs was affecting workers’ purchasing power and could further raise the cost of food, school fees, rents and other essential expenses. The union also called for measures including increased crude supply to local refineries and expanded petroleum storage capacity.