Why Petrol Prices Keep Changing
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said changes in fuel pump prices across the country are driven by market forces following the deregulation of the downstream petroleum sector.
The regulator explained that the removal of price controls means petrol prices can rise or fall depending on factors such as supply levels, global oil prices, and foreign exchange rates.
This system allows marketers to adjust pump prices based on prevailing market conditions.
Officials noted that the current pricing structure is designed to encourage competition among fuel marketers and attract investment into the petroleum sector.
Under the deregulated framework, government agencies no longer fix petrol prices nationwide.
The authority added that fluctuations may continue as the market responds to economic conditions, urging consumers to understand that the new system allows prices to reflect the realities of supply and demand.
