NMDPRA reaffirms deregulated fuel market, intensifies consumer protection measures

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reiterated that Nigeria's downstream petroleum sector operates under a fully deregulated market. This means that prices for petroleum products, including Premium Motor Spirit (PMS), commonly known as petrol, are dictated by market dynamics rather than government mandates.

Ali Ajmi, the State Coordinator for NMDPRA in Sokoto, clarified that the authority has not received any official directives from its headquarters to set a uniform pump price for petrol. He explained that under the current deregulated system, petroleum marketers are responsible for independently sourcing products and setting prices based on factors such as market conditions, transportation expenses, supply availability, and other operational costs.

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As it stands today, the market is deregulated and prices are determined by market forces. Companies are expected to source products and sell according to market realities. We have not received any written directive from our headquarters specifying how much marketers should sell petrol.

Ajmi noted that current petrol prices in Sokoto and surrounding areas fluctuate between ₦1,000 and ₦1,200 per liter. He attributed these higher prices in the North-West region primarily to logistical challenges, particularly the extended distance from coastal depots to inland states like Sokoto. The journey can take up to 10 days due to road conditions, significantly increasing transportation and distribution costs.

The NMDPRA is actively engaging with marketers through inspections, consultations, and stakeholder meetings to ensure fair pricing practices and discourage arbitrary increases. The authority is also strengthening consumer protection measures, warning fuel station operators against under-dispensing products. Consumers are encouraged to report any suspected cases of under-dispensing or sales of substandard products. NMDPRA inspection teams are equipped to verify complaints and conduct enforcement activities, collaborating with state ministries to promote transparency and stability in the sector.

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Petrol prices in Sokoto and neighbouring areas currently range between ₦1,000 and ₦1,200 per litre.