Nigeria’s downstream petroleum regulator has warned fuel station operators nationwide that persistent or serious cases of under-dispensing could lead to the revocation of their operating licences.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said Tuesday it had detected incidents of under-dispensing of petroleum products at retail outlets across the country.
The authority described the practice as a serious breach of consumer trust and directed all retail outlet operators to immediately calibrate and verify their fuel dispensers and totalisers.
The exercise is intended to ensure accurate measurement and that consumers receive the full quantity of petroleum products for which they pay, the regulator said.
“NMDPRA has intensified inspections and enforcement activities nationwide,” the authority said, adding that outlets found to be under-dispensing, operating with improperly calibrated equipment or otherwise compromising dispensing accuracy would be required to take immediate corrective action.
It warned that persistent or serious violations would attract sanctions “up to and including revocation of the outlet’s licence” in line with its regulations.
The regulator also directed major industry associations, including the Major Energy Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria and Petroleum Products Retail Outlets Owners Association of Nigeria, to notify their members and support compliance.
The move comes days after NMDPRA said it would intensify surveillance against exploitative practices in Nigeria’s deregulated downstream petroleum market, including price-gouging, collusion and under-dispensing.
The authority said it does not set petrol pump prices under the current market-based pricing framework but retains powers to enforce regulatory and fair-trade requirements. It is also working with the Federal Competition and Consumer Protection Commission under an existing agreement to monitor such practices.
Nigeria removed subsidies on petrol in 2023, ushering in a market-driven pricing regime that has resulted in significant changes in pump prices and increased scrutiny of practices affecting consumers.
NMDPRA said it remained committed to protecting consumers, promoting transparency and maintaining the integrity of petroleum product transactions nationwide.
