Reason Behind NMDPRA’s Choice To Have NNPC Control Petrol Pricing From Dangote Refinery

Reason Behind NMDPRA’s Choice To Have NNPC Control Petrol Pricing From Dangote Refinery

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has refuted claims that the Nigerian National Petroleum Company Limited (NNPCL) has overstepped its authority by setting the price of petrol from Dangote Refinery. The NMDPRA clarified that the arrangement between Dangote Refinery and NNPCL operates on a voluntary buyer-seller basis…..CONTINUE READING 

Engr. Farouk Ahmed, CEO of NMDPRA, emphasized that according to the Petroleum Industry Act (PIA) 2021, petrol prices are influenced by market forces due to the sector’s deregulation by the government. He reassured that NMDPRA’s role is to prevent market manipulation and protect consumers.

Recent pricing from NNPCL, which set ₦950.22 per litre in Lagos and ₦1,019.22 per litre in Borno State, sparked concerns that NNPCL was assuming regulatory functions. However, Engr. Ahmed downplayed the controversy, stating that the NNPCL’s pricing applies only to its own outlets and does not bind other marketers.

“We aim to avoid unnecessary disputes,” he told Daily Trust. “To clarify, the transaction between NNPCL and Dangote Refinery is based on mutual agreement. While we acknowledge that supply issues can lead to higher prices, expecting us to regulate prices implies that the sector isn’t fully deregulated, which would perpetuate existing challenges.”