The Nigerian Midstream and Downstream Petroleum Regulatory Authority has attributed the frequent changes in petrol prices to rising logistics expenses, crude oil costs and the country’s reliance on a limited number of domestic refineries.
George Ene-Ita, NMDPRA’s head of public affairs, explained that petrol prices now respond to market conditions because the downstream petroleum sector operates under a deregulated pricing system.
Speaking to the News Agency of Nigeria in Abuja on Sunday, Ene-Ita said several stages of the supply chain influence what consumers eventually pay at filling stations.
According to him, the cost of obtaining crude for refining, delays in moving crude to refineries, imported petrol shipments and the transportation of products across the country all contribute to pump prices.
He also identified marine and inland taxes as additional costs that can affect the final price of petrol.
Ene-Ita noted that the domestic refining sector is still developing, with limited sources of locally refined petrol contributing to price instability.
He expressed optimism that stronger competition and a more sustainable domestic refining industry could eventually help create a clearer and more consumer-friendly pricing environment.
The NMDPRA official also clarified that under the current deregulated arrangement, refinery pricing templates and ex-depot prices are not controlled by the regulator.
He said the agency is working with relevant stakeholders, including the Federal Competition and Consumer Protection Commission, to promote fair pricing and reduce disparities in the retail market.
Meanwhile, the President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi Garima, called on the Federal Government to consider measures that would lower the cost of crude supplied to domestic refineries.
Maigandi argued that refiners buying crude at international market prices face higher production costs whenever global crude prices rise, with the additional expenses eventually reflected in petrol prices.
He proposed temporary government support for domestic refineries during periods of sharp volatility, insisting that such assistance would not necessarily amount to a return to fuel subsidy.
According to him, reducing the cost of crude feedstock could enable local refiners to lower their production expenses and, consequently, sell petrol at more affordable prices.
He also advocated a more predictable system for supplying and pricing crude to domestic refineries, saying frequent price swings make it difficult for refiners to plan and maintain stable pump prices.
Petrol prices rose above N1,300 per litre on September 1 as Brent crude climbed to $95.36 per barrel.
However, IPMAN said two days later that petrol stations in the Federal Capital Territory were expected to begin reducing their pump prices in the following days.
