Home » Fuel Prices Driven by Market Forces, Not Government Orders, NMDPRA Declares

Fuel Prices Driven by Market Forces, Not Government Orders, NMDPRA Declares

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Musa Na Allah, Sokoto

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the pricing of Premium Motor Spirit (PMS), popularly known as petrol, is now determined by market forces under the deregulated petroleum sector, dismissing suggestions that marketers are operating under any government-approved uniform pricing template.

The State Coordinator of NMDPRA in Sokoto State, Ali Ajmi, made the clarification while addressing journalists, emphasizing that the authority has not received any directive from its national headquarters fixing pump prices for petroleum marketers.

According to Ajmi, the deregulation policy allows marketers to independently source petroleum products and determine selling prices based on prevailing economic realities, logistics costs, product availability and other market variables.

“The market is deregulated and prices are determined by market forces. Companies are expected to source products and sell based on prevailing market conditions.

“As of today, we have not received any written directive from our headquarters instructing marketers on a specific pump price,” he said.

He noted that despite concerns over fluctuations in fuel prices across the country, Sokoto and parts of the North-West are comparatively better positioned than several other regions where petrol is sold at higher rates.

Ajmi disclosed that current petrol prices in the area range between approximately N1,000 and N1,200 per litre, stressing that the authority is actively engaging marketers to explore ways of reducing the burden on consumers.

“We believe we are doing relatively well when compared with some other locations. Nevertheless, we are continuously engaging marketers to identify practical measures that can help bring prices down further,” he stated.

The NMDPRA coordinator attributed part of the pricing challenge in northern states to transportation and distribution difficulties, particularly the long distance between coastal fuel depots and inland destinations such as Sokoto.

He explained that petroleum products loaded from coastal depots often take up to 10 days before reaching Sokoto due to road conditions and logistics constraints, factors that contribute significantly to final retail prices.

“Products loaded today may not arrive in Sokoto until about 10 days later because of the distance and nature of the roads. Therefore, the products being discharged today were, in most cases, loaded over a week ago,” Ajmi explained.

On regulatory oversight, he said NMDPRA maintains regular engagement with petroleum marketers through inspections, consultations and stakeholder meetings designed to improve supply efficiency and promote compliance with industry standards.

“Engagement is a continuous process. We interact with marketers during inspections and also hold meetings with their representatives to discuss possible solutions to supply and pricing challenges. These consultations take place regularly,” he said.

Ajmi further assured consumers that the authority remains vigilant against sharp practices, particularly under dispensing and the sale of substandard petroleum products, warning that any station found violating regulations would face sanctions.

He urged members of the public to report suspected infractions, noting that NMDPRA inspection teams are equipped with calibrated measuring instruments and product quality-testing kits capable of verifying complaints promptly.

“If anyone discovers a station dispensing below the approved quantity or suspects product quality issues, they should contact us immediately. Our teams are always on the field and can respond swiftly to investigate and take necessary action,” he said.

The coordinator also revealed that NMDPRA maintains close collaboration with the Sokoto State Ministries of Energy, Commerce and Industry, among other stakeholders, to strengthen consumer protection and improve service delivery.

He said the partnership has enhanced information sharing, regulatory compliance and efforts aimed at ensuring Nigerians receive quality petroleum products at fair market prices.

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