The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed fluctuations in petrol prices to several market factors, including crude oil procurement, domestic refining arrangements, transportation expenses and taxes.

The agency’s Head of Public Affairs, George Ene-Ita, disclosed this in Abuja on Sunday during an interview with the News Agency of Nigeria.

Ene-Ita said petrol pricing had been fully deregulated, meaning that changes in supply costs and international market conditions could be reflected in the prices paid by consumers.

He identified the cost of obtaining crude for use by local refineries and the period between purchasing crude offshore and delivering it to refineries as some of the factors affecting the final price of petrol.

According to him, the cost implications also extend to imported petroleum products, where the time between ordering petrol cargoes and their arrival at Nigerian ports can affect pricing.

He added that transportation, landing charges and taxes imposed on marine and inland movement of petroleum products were also considered when determining market prices.

Ene-Ita noted that the pricing environment could become more stable as Nigeria’s domestic refining capacity develops into a more competitive and sustainable system.

He further explained that under the current deregulated framework, refinery pricing templates and ex-depot prices were not subject to direct regulation.

The NMDPRA official, however, said the agency was working with relevant stakeholders, including the Federal Competition and Consumer Protection Commission, to promote price parity and ensure that consumers were not subjected to unjustified disparities at the final point of sale.

The explanation comes amid renewed increases in petrol prices across the country.

In the Federal Capital Territory, petrol is currently selling for between N1,299 and N1,350 per litre, following an increase in the ex-depot price by the Dangote Refinery to between N1,265 and N1,290 per litre.

The development has raised concerns among motorists and households, who say rising fuel costs are adding to inflation and the broader cost-of-living crisis.

The Independent Petroleum Marketers Association of Nigeria has consequently called on the Federal Government to consider measures that could lower the cost of crude supplied to domestic refineries.

IPMAN President, Maigandi Garima, said international crude oil prices were putting pressure on local petrol prices because domestic refiners purchase crude at prevailing market rates.

Garima argued that reducing the cost of crude available to local refineries could lower production expenses and ultimately translate into cheaper petrol for consumers.

He said such government support should be viewed as a temporary intervention to strengthen domestic refining rather than a return to the former petrol subsidy regime.

Garima also advocated a more predictable system for supplying and pricing crude for Nigerian refineries, arguing that frequent changes in crude costs make it difficult for refiners to maintain stable prices.

He said a more consistent crude supply and pricing framework would improve refinery planning and could contribute to greater stability in the prices of petroleum products.