NMDPRA explains key factors fuelling PMS price spikes across Nigeria

*The Nigerian Midstream and Downstream Petroleum Regulatory Authority explains the increments in oil pump prices indicate a fully deregulated downstream petroleum regime, where increments are a result of market dynamics

Isola Moses | ConsumerConnect

As the pump prices of the Premium Motor Spirit (PMS), also called petrol increase across major cities in the last few days, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said the increments resulted from “market dynamics” under the deregulated downstream petroleum sector of the petroleum industry

George Ene-Ita, Spokesperson of NMDPRA, said this in an interview while reacting to the recent increase in fuel pump prices linked to the ongoing Middle East crisis, in Abuja, FCT.

Price Hikes: Consumers lament N1,250 Per Litre, raising transport fares in Lagos, Abuja, Oyo, others

However, Nigerian consumers have expressed concern about the official justifications for increases in pump prices, and the implications on the country.

Several motorists in Abuja have expressed concern and dissatisfaction over the recent hike in prices of Premium Motor Spirit, which were previously sold between N875 and N880 per litre, agency report said.

Likewise, independent marketers are selling fuel between N960 and N1,000 per litre and above, while outlets of the Nigerian National Petroleum Company Limited (are selling at about N960 per litre.

Ene-Ita revealed the variations in pump prices across the country were not due to regulatory interference but were driven by supply and demand forces within the market.

The Spokesperson also explained: “Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. “Therefore, pump price vagaries are purely as a result of market dynamics.”

He further explained that under a deregulated framework, petroleum product prices responded to prevailing market conditions.

The Authority said that the policy direction was aimed at allowing market forces to determine prices while encouraging competition, efficiency and increased investment in Nigeria’s downstream oil and gas sector.