Fuel Price Volatility: Crude Sourcing, Logistics Top NMDPRA's Concerns

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has identified several factors driving fuel price volatility in the country. According to Mr George Ene-Ita, Head of Public Affairs at NMDPRA, these factors include crude oil sourcing, single-source domestic refining, logistics, and transportation costs.

Crude oil sourcing is a major factor, as feedstock and time lags between procurement and arrival at refineries are factored into product pricing. Marine and inland taxes associated with the movement and supply of petroleum products also contribute to volatility.

NMDPRA has deregulated fuel prices, making them subject to market fluctuations. The authority is collaborating with stakeholders to ensure price equilibrium and parity at the last mile.