Consumers and oil marketers remain exposed to fuel-price swings because petrol is fully deregulated and the market still depends on limited domestic refining, the Nigerian Midstream and Downstream Petroleum Regulatory Authority said. George Ene-Ita, the authority's head of public affairs, gave the explanation in an interview in Abuja on Sunday, September 6, 2026.
NMDPRA pointed to a cluster of structural costs that feed directly into pump prices. The regulator highlighted the expense of sourcing crude oil as feedstock and the time lag between procurement and delivery to refineries, factors that are built into product pricing. Transportation and landing charges, plus marine and inland taxes tied to moving petroleum products, also add to the cost base.
Ene-Ita warned that a domestic refining sector reliant on single-source supplies magnifies those risks, and said a more robust, competitive and sustainable refining ecosystem would make pricing more transparent and deliver clearer benefits to consumers. Under the current regulatory framework, he noted, refinery pricing templates and ex-depot prices are not regulated.
To limit downstream distortions, NMDPRA is working with stakeholders and agencies including the Federal Competition and Consumer Protection Commission to restore price equilibrium and parity at the last mile. The authority framed that coordination as the immediate lever available inside the existing market structure.
The comments come amid renewed pressure from industry participants. A stakeholder named Garima urged government intervention to trim the cost of crude supplied to domestic refineries during periods of international market volatility. Nairametrics reported in March that oil marketers had warned their businesses were suffering from a spike in petrol prices linked to the conflict in the Middle East.
What happens next will depend on two paths: structural fixes to domestic refining and short-term policy moves to cushion feedstock costs. NMDPRA's engagement with the FCCPC may ease last-mile disparities, but the regulator made clear it lacks authority to control refinery templates and ex-depot pricing without broader changes to the market or new government measures.
