The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says fluctuations in fuel pump prices are a direct result of market dynamics under Nigeria’s deregulated downstream petroleum sector.
The authority’s spokesperson, George Ene-Ita, said this in an interview with journalists in Abuja while reacting to the recent increase in fuel pump prices linked to the ongoing Middle East crisis.
Many motorists in Abuja have expressed concern and dissatisfaction over the recent hike in the price of Premium Motor Spirit (PMS), also known as fuel, which was previously sold at between N875 and N880 per litre.
Currently, independent marketers are selling fuel at between N960 and N1,000 per litre, while outlets of the Nigerian National Petroleum Company Limited are selling it at about N960 per litre.
Nigerians have expressed concern about the justification for the pump price increase and its implications for the country.
Mr Ene-Ita said the variations in pump prices across the country were not due to regulatory interference but were driven by supply and demand forces within the market.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration.
“Therefore, pump price vagaries are purely a result of market dynamics,” he said.
He explained that under a deregulated framework, petroleum product prices respond to prevailing market conditions.
Mr Ene-Ita added that the policy direction was aimed at allowing market forces to determine prices while encouraging competition, efficiency, and increased investment in Nigeria’s downstream oil and gas sector.
(NAN)