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🇳🇬 Nigeria /Economy & Trade

NMDPRA warns marketers against fuel profiteering as crude prices fall

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Nigeria's petroleum regulatory authority warned oil marketers against price gouging and profiteering.
  • The warning follows a directive for marketers to ensure pump prices reflect the recent decline in global crude oil prices.
  • The authority is monitoring outlets and will sanction companies found engaging in unfair pricing practices.

Nigeria's Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a stern warning to oil marketers, cautioning them against profiteering and arbitrary increases in fuel prices. The authority emphasized that pump prices must remain cost-reflective, adhering to the Petroleum Industry Act of 2021.

Pump Prices of Petroleum Products Must Be Cost Reflective

— Nigerian Midstream and Downstream Petroleum Regulatory AuthorityTitle of the statement issued by NMDPRA regarding fuel pricing.

This directive comes shortly after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, instructed the NMDPRA to intensify surveillance across the downstream sector. The goal is to ensure that Nigerians benefit from the recent drop in global crude oil prices.

In a statement, NMDPRA's Head of Media and Public Relations, George Ene-Ita, announced that the authority has begun monitoring depots and retail outlets nationwide. Marketers found engaging in price gouging will face regulatory sanctions. The statement, titled 'Pump Prices of Petroleum Products Must Be Cost Reflective,' acknowledged the global decrease in crude oil prices and committed to reflecting these market realities in domestic fuel prices.

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.

— Nigerian Midstream and Downstream Petroleum Regulatory AuthorityOfficial statement on ensuring cost-reflective fuel prices.

Concerns have been raised by consumers and industry stakeholders over elevated retail fuel prices in some areas, despite a sustained decline in international crude oil costs. Minister Lokpobiri reiterated that deregulation aims to foster competition and efficiency, not to create opportunities for excessive profiteering. He stressed that while prices are not fixed by the government, operators must ensure adjustments accurately mirror international oil prices and foreign exchange conditions.

Pricing is also another issue, and I think that is one issue that

— Heineken LokpobiriMinister of State for Petroleum Resources (Oil) speaking on fuel pricing.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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