Abuja, Nigeria – The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that fluctuations in fuel pump prices result from market dynamics under the country’s deregulated downstream petroleum sector.
The authority’s spokesperson, George Ene-Ita, made this declaration in an interview on Sunday while reacting to recent price increases linked to the ongoing Middle East crisis.
Okay News reports that Ene-Ita explained the situation reflects how a deregulated petroleum market operates. Fuel prices respond to supply and demand conditions rather than government regulation.
Ene-Ita emphasized that variations in pump prices across Nigeria are not due to regulatory interference. Instead, they are driven by supply and demand forces within the market.
He stated that Nigeria has operated a fully deregulated downstream petroleum regime since the inception of the current administration. Therefore, pump price vagaries are purely a result of market dynamics.
Fuel prices in Nigeria have increased in recent days following the escalation of conflict between Iran and a combined force of Israel and the United States.
On March 3, the Nigerian National Petroleum Company Limited increased the pump price of Premium Motor Spirit at its retail outlets in Abuja to N960 per litre, up from N875. This followed a surge in global crude oil prices driven by escalating geopolitical tensions.
Dangote Petroleum Refinery also raised its gantry price by N100, bringing the ex-depot rate to N874 per litre from N774.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, warned that the increase would have a ripple effect on the wider economy.
The ongoing war has pushed oil prices higher globally. Brent crude futures surged by about 20% last week, while West Texas Intermediate crude climbed roughly 25% amid fears of supply disruptions.
The rise in prices is partly linked to attacks on oil infrastructure in the Middle East.
On Saturday, Israeli forces struck oil storage facilities in Tehran, marking the first reported attack on Iran’s oil infrastructure since the war began.
Iran has also targeted oil facilities in several Middle East and Gulf countries where United States forces sometimes operate.
Saudi Arabia’s state oil giant was forced to halt operations at a major refinery in the Eastern Province after a drone strike disrupted facilities capable of processing more than 500,000 barrels of crude per day.
In Qatar, authorities temporarily stopped downstream production after energy facilities in Ras Laffan Industrial City and Mesaieed Industrial City were targeted.
The attacks have affected energy infrastructure across several Gulf countries, including the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman.
However, Iran has since signaled that it would refrain from targeting neighboring countries unless attacks against it originate from their territories.
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