The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says fluctuations in fuel pump prices are a direct result of market dynamics under Nigeria’s deregulated downstream petroleum sector.
The authority’s spokesperson, George Ene-Ita, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday while reacting to the recent increase in fuel pump prices linked to the ongoing Middle East crisis.
He explained that the situation reflects how a deregulated petroleum market operates, where fuel prices respond to supply and demand conditions rather than government regulation.
What they are saying
Ene-Ita said the variations in pump prices across the country are not due to regulatory interference but are instead driven by supply and demand forces within the market.
- “Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. Therefore, pump price vagaries are purely a result of market dynamics,” he said.
Backstory
Fuel prices in Nigeria have increased in recent days following the escalation of the conflict between Iran and a combined force of Israel and the United States.
On March 3, Nairametrics reported that the Nigerian National Petroleum Company Limited (NNPCL) increased the pump price of Premium Motor Spirit (PMS) at its retail outlets in Abuja to N960 per litre, up from N875, following a surge in global crude oil prices driven by escalating geopolitical tensions in the Middle East.
Dangote Petroleum Refinery also raised its gantry price by N100, bringing the ex-depot rate to N874 per litre from N774.
In response, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that the increase in the price of Premium Motor Spirit by the Dangote refinery would have a ripple effect on the wider economy.
What you should know
The ongoing war has pushed oil prices higher globally. Data from global commodities markets show that Brent crude futures surged by about 20 per cent last week, while West Texas Intermediate (WTI) crude climbed roughly 25 per cent amid fears of supply disruptions.
The rise in prices is partly linked to attacks on oil infrastructure in the Middle East.
On Saturday, Israeli forces struck oil storage facilities in Tehran, marking the first reported attack on Iran’s oil infrastructure since the war between the two sides began.
Iran has also targeted oil facilities in several Middle East and Gulf countries, where US forces sometimes operate from.
- Nairametrics reported that Saudi Arabia’s state oil giant was forced to halt operations at a major refinery in the country’s Eastern Province after a drone strike linked to Iran’s retaliatory attacks disrupted facilities capable of processing more than 500,000 barrels of crude per day.
- In Qatar, authorities also temporarily stopped downstream production after energy facilities in Ras Laffan Industrial City and Mesaieed Industrial City were targeted in a series of strikes.
- The attacks have affected energy infrastructure across several Gulf countries, including the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.
However, Iran has since signalled that it would refrain from targeting neighbouring countries unless attacks against it originate from their territories.
