By Joycelyn Ellakeche Adah
As global crude oil prices continue to decline, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that the pump prices of petroleum products in Nigeria must reflect the prevailing cost of supply, warning marketers against exploiting consumers through arbitrary price increases.
The regulator said the position is in line with the provisions of the Petroleum Industry Act (PIA) 2021, which promotes a market driven pricing system.
Under the law, fluctuations in international crude oil prices and other supply costs are expected to influence the retail price of petroleum products, whether prices move upward or downward.
Persecondnews recalls that more than a week ago, oil prices dipped and were poised for a monthly decline, with investors eyeing potential U.S.-Iran talks in Doha amid a strained interim ceasefire in the four-month-old war.
Brent August crude futures, which expire on Tuesday, June 30, were down 0.9%, or 64 cents, at $72.51 a barrel as of 0356 GMT.
These levels are around $20, or 22%, lower than last month’s closing. The more actively traded September contract was down 0.4%, or 31 cents, at $73.6 a barrel.
U.S. West Texas Intermediate for August fell 0.6%, or 39 cents, to $70.36 a barrel. Prices are set for around a $17 drop, or 19%, from the May 29 closing.
Both Brent and WTI prices are almost back at pre-war levels on February 27.
Against this backdrop, in a press statement signed by the NMDPRA Chief Executive, George Ene-Ita, and obtained by Persecondnews, the Authority warned Oil Marketing Companies (OMCs) against price gouging and profiteering, stressing that any attempt to inflate prices beyond what is justified by market realities would attract regulatory sanctions.
To enforce compliance, the NMDPRA said it has intensified surveillance across fuel depots and retail outlets nationwide.
It added that it is working closely with security agencies and the Federal Competition and Consumer Protection Commission (FCCPC) to protect consumers from unfair pricing practices and ensure marketers comply with existing regulations.
The Authority also reassured Nigerians that it remains committed to maintaining adequate and reliable supplies of petroleum products across the country while closely monitoring activities in the midstream and downstream sectors.
Persecondnews reports that the regulator’s assurance aligns with growing public expectation that declining global crude benchmarks should reflect in domestic pump prices.
Such a reduction is widely seen as critical to lowering transportation costs and mitigating broader inflationary pressures on Nigerian households.