NMDPRA Cites Logistics Costs, Single-Source Refining for Petrol Price Volatility

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed volatility in petrol prices to logistics costs, single-source refining, and crude oil sourcing. According to George Ene-Ita, head of public affairs at NMDPRA, the deregulated market means that pump price fluctuations are inevitable.

He noted that marine and inland taxes associated with the movement and supply of petroleum products also contribute to the pricing. 'Perhaps when the domestic refining ecosystem becomes more robust, competitive, and sustainable, the issues regarding pricing will become clearer and more beneficial to consumers,' Ene-Ita said.

Abubakar Maigandi Garima, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged the federal government to intervene in crude oil pricing for domestic refining. He argued that higher crude oil prices lead to increased production costs for refiners, who then pass on these additional costs to consumers.

The IPMAN president called for a more predictable crude oil pricing arrangement for domestic refineries and a temporary measure to support domestic refining and reduce pressure on consumers.