The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed the recent swings in fuel pump prices to the natural workings of a deregulated market, dismissing suggestions that regulatory actions are behind the increases.
George Ene-Ita, spokesperson for the authority, made the remarks in an interview with the News Agency of Nigeria in Abuja on Sunday, March 8, responding to growing public frustration over rising fuel costs linked to the ongoing crisis in the Middle East.
Motorists across Abuja have voiced their displeasure with the latest round of price hikes. Fuel that was previously sold between ₦875 and ₦880 per litre has now climbed significantly.
Independent marketers are currently charging between ₦960 and ₦1,000 per litre and in some cases even higher, while outlets operated by the Nigerian National Petroleum Company Limited are selling at around N960 per litre.
Many Nigerians have questioned what is driving the increases and what the broader consequences will be for everyday life in the country.
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Ene-Ita maintained that the differences in fuel prices across various locations have nothing to do with regulatory interference and are instead shaped entirely by supply and demand.
“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 said.
He explained that under a deregulated system, the prices of petroleum products naturally move in response to prevailing market conditions.
The policy, he added, is designed to let market forces set prices while fostering competition, improving efficiency and attracting greater investment into Nigeria’s downstream oil and gas sector.
(NAN)