Amid apppeal from Nigerian over reduction in fiel prices, the Federal Government has formally declared that it lacks the legal power to control or fix pump prices of Premium Motor Spirit (PMS), commonly known as petrol.
The apex government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributed the ongoing nationwide price spikes to market forces operating under the Petroleum Industry Act (PIA) 2021.
This was stated on Saturday through a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on behalf of NMDPRA.
The regulatory authority acknowledged the profound economic pressure hitting households, transport operators, and businesses across the country as retail prices soar, but insisted that state intervention is strictly barred by law.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acknowledges the deep financial strain and difficulties many Nigerians are experiencing following the recent rise in Premium Motor Spirit (PMS) pump prices.
“We are fully sensitive to the pressure this places on households, transport workers, and businesses across the country, and we share in the commitment to seeing relief take root as market conditions stabilise.”
The Legal Bar on Price Fixing
Anchoring its defense on statutory provisions, the NMDPRA emphasized that President Bola Tinubu’s administration cannot issue administrative price templates or mandate retail caps.
“Pursuant to the Petroleum Industry Act (PIA) 2021: Section 205(1) provides that wholesale and retail prices of petroleum products shall be based on unrestricted free market pricing conditions,” the authority noted.
“The Authority does not fix pump prices or issue administrative price templates. Section 205(2)-(4) restricts government intervention in pricing strictly to exceptional circumstances where there is formal evidence of declared market failure. No such market failure has been declared.”
Despite its hands-off stance on price determination, the regulator insisted it would not allow marketers to exploit consumers unfairly, revealing that the agency is partnering with the Federal Competition and Consumer Protection Commission (FCCPC) to curb anti-competitive behavior, price-gouging, product adulteration, and under-dispensing at filling stations nationwide.
The official clarification follows a scathing critique by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar. Atiku called on President Tinubu to intervene directly by lowering petrol and diesel prices to avert further economic distress.
Detailing the ripple effect of high energy tariffs on the broader economy, Atiku warned that standard living costs have escalated beyond the reach of average citizens.
“When petrol becomes expensive, transportation becomes expensive. When transportation becomes expensive, food becomes expensive. Farmers pay more to move produce. Traders pay more to stock their shops. Workers pay more to get to work. Businesses pay more for logistics and energy. In the end, the Nigerian family receives the bill. When the government makes energy expensive, it makes life expensive,” Atiku declared.