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Home Sectors Energy

NMDPRA to suspend license of marketers, petrol stations selling to illegal peddlers  

Cyrus Ademola by Cyrus Ademola
August 17, 2024
in Energy, Sectors
Fuel scarcity: Black marketers cashing out big in Abuja
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a stern warning to filling stations and fuel marketers against the unlawful sale of premium motor spirit (PMS), commonly known as petrol, to illegal roadside peddlers. 

In a post on X and through a directive issued after a closed-door stakeholders’ meeting with major retail outlet managers in the Federal Capital Territory (FCT) on Friday, the NMDPRA warned that non-compliance would lead to the suspension of licenses. 

The agency stated on X that filling stations must refrain from supplying fuel to illegal peddlers, warning that failure to comply will result in the suspension of their retail licenses. 

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“NMDPRA embarks on a war against the illegal sale of petroleum products, especially PMS, in jerrycans. Filling stations are advised to desist from servicing illegal peddlers; failure to do so will result in the suspension of retail licences,” NMDPRA said. 

Illegal to sell PMS in Jerry can  

In addition, the meeting in Abuja was reportedly convened to reinforce the authority’s existing regulations against the illegal peddling of petroleum products, particularly premium motor spirit (PMS) in jerry cans.  

Mr. Ogbugo Ukoha, Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, emphasized that marketers were cautioned that the authority would now enforce strict compliance.  

Ukoha also stated that NMDPRA would intensify its surveillance and monitoring efforts, with plans to revoke the retail licenses of any marketers found supporting or engaging in this illegal activity. 

“The authority is taking this decisive step to safeguard lives and properties of Nigerians that are usually at risk of fire outbreaks through improper handling of the volatile and highly flammable product. 

“The authority is also mindful of the nefarious practices of cross border smuggling of the products with the use of jerry cans and must tackle such,’’ he said. 

A team led by the executive directors of NMDPRA, Ukoha and Dr Mustapha Larmode in collaboration with security agencies also conducted surveillance to some outlets around the metropolis. 

What you should know 

NMDPRA is the regulatory body that overseas activities of oil and gas in the midstream and downstream sector, enforcing certain regulations in the sector.  

The agency was created in August 2021 in line with the Petroleum Industry Act 2021 which provides legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry as well as development of Host Communities. 

NMDPRA’s encompasses a merger of three defunct regulatory agencies: Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalization Fund {Management} Board (PEFMB), the Midstream and Downstream Divisions of the Department of Petroleum Resources (DPR). 

The Authority is responsible for the regulation of the midstream and downstream petroleum operations in Nigeria which includes technical, operational, and commercial activities.


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Tags: Black MarketNMDPRA
Cyrus Ademola

Cyrus Ademola

  • Cyrus Ademola is an energy and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and energy analysis. His works have been featured on different media outlets, covering from oil and gas to business trends.

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