NMDPRA threatens licence revocation for petrol stations under-dispensing products

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned petrol station operators nationwide that persistent or serious cases of under-dispensing could lead to sanctions, including revocation of their licences.

The warning was disclosed by the NMDPRA on September 22 in a post on its official X account, as the Authority announced intensified inspections and enforcement activities across the country.

The development comes amid a recent increase in petrol pump prices and the regulator’s broader efforts to monitor the downstream petroleum market for exploitative practices.

NMDPRA threatens sanctions over fuel under-dispensing

The NMDPRA said it has observed incidents of under-dispensing of petroleum products at retail outlets nationwide, describing the practice as a serious breach of consumer trust that would not be tolerated.

The Authority directed all retail outlet operators to immediately calibrate and verify their dispensers and totalizers to ensure that consumers receive the quantity of petrol they pay for.

• “To safeguard the interests of consumers, all retail outlet operators are hereby directed to carry out immediate calibration and verification of all dispensers and totalizers.”

The NMDPRA said the exercise is intended to guarantee accurate measurement and ensure consumers receive the full value of the petroleum products they purchase.

The Authority said it has intensified inspections and enforcement activities nationwide.

Outlets found to be under-dispensing, operating with improperly calibrated equipment, or otherwise compromising dispensing accuracy will be required to take immediate corrective action.

• “Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s license, in line with NMDPRA’s regulations.”

The Authority also called on MEMAN, DAPPMAN, IPMAN and PETROAN to promptly notify their members of the directive and support full compliance across the industry.

NMDPRA steps up petrol market surveillance

The latest warning follows actions announced by the NMDPRA two days earlier amid the recent increase in Premium Motor Spirit (PMS) prices.

• The Authority had said it could not fix petrol pump prices because prices are market-driven, but stated that it would step up surveillance against price-gouging and other exploitative practices.
• The NMDPRA said deregulation does not exempt petroleum operators from regulatory requirements or fair-trade standards.
• The Authority said it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors.

The surveillance is also aimed at curbing the illegal diversion and smuggling of petroleum products.

The NMDPRA said it was collaborating with the Federal Competition and Consumer Protection Commission (FCCPC) under an existing Memorandum of Understanding to monitor the market for price-gouging, collusion, under-dispensing and compromised product quality.

The latest directive therefore extends the Authority’s recent focus on monitoring activities in the downstream petroleum market, with particular attention on accurate dispensing and consumer protection.

Falling oil prices may ease petrol costs

Oil prices fell to a two-week low on Tuesday after Iran said it could reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports.

• Checks by Nairametrics show that WTI crude was trading at $89.94 per barrel, down $2.43 or 2.63%, while Brent crude stood at $98.29 per barrel, down $2.05 or 2.04%.
• The movement marks a sharp reversal from recent price levels, with the latest decline coming after crude prices had climbed above the $100 per barrel mark.
• Just two trading days earlier, on Friday, Brent crude had settled at $104.87 per barrel. Brent has therefore fallen by more than $6 per barrel from Friday’s settlement to the latest level.

The decline came as the market responded to the possibility of the Strait of Hormuz reopening within seven days.

A sustained decline in crude prices could begin to reflect in petrol prices, although the NMDPRA has maintained that pump prices are market-driven under the deregulated downstream petroleum market.