Fuel Hike: The Regulator’s Alibi

Petrol now sells for between N1,400 and N1,500 a litre in many Nigerian cities. Confronted with the outrage that followed, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) did what regulators too often do: it explained why the increase was not its fault.
In a statement issued on September 19, the NMDPRA said it does not fix pump prices. It cited Section 205(1) of the Petroleum Industry Act, which places wholesale and retail pricing under unrestricted free-market conditions. This is technically correct. We believe it is also, standing alone, an evasion of what a regulator is for.
The trigger for the latest surge is easy to trace. The Dangote Petroleum Refi...