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 the News Agency of Nigeria (NAN) in Abuja while reacting to the recent increase in fuel pump prices linked to the ongoing Middle East crisis.
NAN reports that many motorists in Abuja have expressed concern and dissatisfaction over the recent hike in prices of Premium Motor Spirit (PMS) called fuel, which were previously sold between N875 and N880 per litre.
Currently, independent marketers are selling fuel between N960 and N1,000 per litre and above, while outlets of the Nigerian National Petroleum Company Limited are selling at about N960 per litre.
Nigerians have expressed concern on the justification for the increase in pump price and the implications to the country.
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 as a result of market dynamics,” he said.
He explained that under a deregulated framework, petroleum product prices responded to prevailing market conditions.
He 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)
