Why Fuel Prices Keep Climbing: NMDPRA Speaks On Sourcing, Logistics And Single-Source Refining

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that ongoing petrol price fluctuations are driven by complex market realities, including crude oil procurement costs, reliance on a single domestic refiner, and transport overheads.

​Speaking in Abuja on Sunday, September 6, 2026, NMDPRA Head of Public Affairs, George Ene-Ita, emphasized that because Premium Motor Spirit (PMS) is fully deregulated, pump prices naturally reflect all supply chain volatilities.

​Key highlights from the update include:

• ​Key Drivers of Petrol Price Hikes: Ene-Ita outlined several factors pushing up prices:
  • ​Sourcing crude oil feedstock and the time lag between offshore procurement and refinery arrival.
  • ​Reliance on a single source for domestic refining, alongside import lead times when sourcing fuel abroad.
  • ​Cumulative transport expenses, landing fees, marine taxes, and inland distribution logistics.
• ​Pricing Rules and Market Oversight: Ex-depot and refinery prices are no longer fixed by the government. However, the NMDPRA is working alongside agencies like the Federal Competition and Consumer Protection Commission (FCCPC) to prevent arbitrary exploitation and ensure fair pricing across retail outlets.
• ​Current Retail Prices: In Lagos, petrol pump prices have reached approximately N1,310 per litre, up from N1,075–N1,135 per litre recorded in early July 2026.
• ​Marketers Cry Out Over Squeezed Margins: The Independent Petroleum Marketers Association of Nigeria (IPMAN), led by President Alhaji Maigandi Garima, noted that rising global crude prices directly inflate refiners’ production costs. Marketers report that higher product costs require massive capital outlays, while sky-high interest rates and plunging consumer demand—with bulk orders dropping significantly—are severely damaging their businesses.
• ​Calls for Government Intervention: IPMAN has urged the Federal Government to step in and offer crude oil to local refiners at moderated rates during global market surges to ease the burden on everyday consumers and businesses.

COURTESY: ayobamiblog.com