The Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that it lacks the legal power to fix petrol prices in Nigeria, citing strict provisions of the Petroleum Industry Act (PIA) 2021.

In a statement released via its official X handle on Saturday, the regulatory body clarified that Section 205(1) of the PIA mandates that wholesale and retail prices of petroleum products must be driven entirely by unrestricted free-market forces. According to the agency, the federal government can only intervene in pricing under exceptional circumstances where a market failure has been formally declared—a situation that has not occurred.

"The authority does not fix pump prices or issue administrative price templates," the NMDPRA stated, acknowledging the intense financial strain and hardships Nigerians are currently facing due to the recent spike in petrol pump prices.

While ruling out direct price control, the NMDPRA emphasized that its statutory role is limited to preventing anti-competitive monopolies, price-fixing, and the abuse of market dominance.

To shield citizens from exploitation, the authority revealed it has partnered with the Federal Competitive and Consumer Protection Commission (FCCPC) to run joint surveillance operations targeting under-dispensing, artificial collusion, and compromised fuel quality.

Additionally, the NMDPRA is collaborating with the Nigeria Customs Service (NCS) and other security agencies to intensify border surveillance to curb product smuggling and ensure national energy security.