Movements in fuel costs are dictated by supply and demand, according to the NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributes the fluctuations in fuel pump prices to the natural workings of the market under the country's deregulated downstream petroleum sector.

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According to the authority's spokesperson, George Ene-Ita, this was disclosed in a conversation with the News Agency of Nigeria (NAN) in Abuja, where he addressed the recent surge in fuel pump prices linked to the ongoing Middle East crisis.

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Motorsists in Abuja have been vocal about their dissatisfaction with the recent hike in the price of Premium Motor Spirit (PMS), also known as fuel, which previously cost between N875 and N880 per litre.

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Presently, independent marketers are selling fuel at a range of N960 to N1,000 per litre, while the Nigerian National Petroleum Company Limited's outlets are selling at approximately N960 per litre.

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Nigerians have expressed concern over the justification for the increase in pump price and its implications for the country, prompting a response from the regulatory authority.

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George Ene-Ita clarified that the variations in pump prices across the country are driven by market forces, rather than regulatory interference.

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Nigeria has been operating under a fully deregulated downstream petroleum regime since the inception of the current administration, meaning that pump price fluctuations are a direct result of market dynamics.

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Under this deregulated framework, petroleum product prices adjust according to prevailing market conditions, as explained by Ene-Ita.

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The policy direction is intended to allow market forces to determine prices, while fostering competition, efficiency, and increased investment in Nigeria's downstream oil and gas sector.