NMDPRA Explains Why Petrol Prices Keep Fluctuating as Pump Price Tops ₦1,300
The Nigerian Midstream and Downstream Petroleum Regulatory Authority says petrol prices fluctuate because the market is fully deregulated. According to the agency, crude oil costs, reliance on limited domestic refining, imported fuel delivery times, transportation, landing charges and taxes all affect pump prices. The authority said refinery pricing templates and ex-depot prices are not regulated under the current framework. It added that it is engaging industry stakeholders and the Federal Competition and Consumer Protection Commission to encourage fairer pricing at the retail level. IPMAN has urged the Federal Government to reduce the cost of crude supplied to local refineries during periods of sharp global price volatility. The marketers' group said cheaper and more predictable crude supply could lower refining costs and help stabilise petrol prices for consumers. Petrol reportedly rose above ₦1,300 per litre on September 1 as Brent crude climbed to $95.36 per barrel, although marketers later said fresh supplies could lead to price reductions in the FCT.
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