The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says changes in petrol pump prices are driven by market dynamics under Nigeria’s deregulated downstream petroleum sector.
George Ene-Ita, spokesperson of the authority, spoke in an interview with NAN on Sunday.
Ongoing geopolitical tensions in the Middle East have triggered significant shifts in global crude oil prices.
On Friday, crude oil price surged to $91 a barrel as the war involving the United States (US), Israel, and Iran continued to spread across the region.
On Saturday, in Nigeria, the pump price of petrol increased to as high as N1,040 per litre in Lagos and N1,080 per litre in Abuja.
Reacting to the development, Ene-Ita said the variations in pump prices nationwide was not a result of regulatory interference but was driven by supply and demand within the market.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration,” he said.
“Therefore, pump price vagaries are purely as a result of market dynamics.”
Ene-Ita explained that within a deregulated framework, the prices of petroleum products are determined by prevailing market conditions.
The spokesperson added that the policy was designed to allow market forces to set prices while promoting competition, improving efficiency, and attracting greater investment into Nigeria’s downstream oil and gas sector.
