NMDPRA Refutes Claims of NNPCL Overstepping Authority in Dangote Refinery Petrol Pricing

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has dismissed suggestions that the Nigerian National Petroleum Company Limited (NNPCL) is overstepping its authority by determining the price of petrol from Dangote Refinery.

Speaking on Tuesday, NMDPRA’s CEO, Engr. Farouk Ahmed, clarified that the deal between Dangote Refinery and NNPCL operates under a “willing seller, willing buyer” arrangement, in line with the deregulated market established by the Petroleum Industry Act (PIA) of 2021.

He emphasized that market forces now dictate petrol pricing in Nigeria, and the NMDPRA’s role is to prevent exploitation, ensuring fair competition.

Following NNPCL’s release of a price template, which listed petrol prices of ₦950.22 per litre in Lagos and ₦1,019.22 in Borno, concerns were raised about the NNPCL’s involvement in setting prices. However, Ahmed clarified that these prices apply only to NNPCL’s outlets and do not bind other marketers.

“The recent transaction between NNPCL and Dangote Refinery is strictly based on market dynamics, not regulatory overreach,” Ahmed stated, adding that true deregulation means prices are not set by the government.

He acknowledged that current supply limitations are contributing to high prices but expressed optimism that more competition in the sector will help stabilize costs in the future.