The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to closely monitor fuel pricing across the country and ensure petroleum marketers do not exploit Nigerians through arbitrary pump price increases.
Politics Nigeria reports that the directive was given by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the NMDPRA General Counsel and Legal Advisers Forum held in Abuja.
The minister said that although the downstream petroleum sector has been fully deregulated, operators must not use deregulation as an excuse to impose unfair prices on consumers.
Lokpobiri noted that many Nigerians expected a drop in petrol prices following the recent decline in global crude oil prices and easing tensions in the Middle East. According to him, the reduction in international crude prices should ordinarily reflect in local pump prices of Premium Motor Spirit (PMS), widely known as petrol.
However, he expressed concern that this expected adjustment has yet to happen, despite the sharp drop in crude prices in recent weeks.
“Following de-escalation of tensions between Iran and the United States, we expected to see a commensurate downward adjustment in the prices of PMS and other petroleum products. However, that has not yet happened.”
The minister said while market forces are expected to determine pricing under deregulation, the regulator still has a legal duty to prevent market abuse and excessive profiteering.
He stressed that the Petroleum Industry Act gives the regulator enough authority to ensure fairness in the market and protect consumers from exploitation.
Lokpobiri also raised concerns about fuel measurement practices at filling stations nationwide. He asked the regulator to intensify oversight to ensure Nigerians get the exact quantity of fuel they pay for..Continue Full Reading