The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has asserted that there will be no hike in gas prices, affirming its commitment to retaining the existing Domestic Base Price (DBP) and applicable gas wholesale prices for crucial domestic sectors of the Nigerian economy. The decision, according to the Corporate Communications and Stakeholder Management department of the Authority, aligns with its mandate as outlined in the Petroleum Industry Act (PIA) of 2021.
The PIA, assented to by the President on August 16, 2021, with gazette publication on August 27, 2021, provides a clear regulatory framework for determining a market-based pricing regime for the domestic gas market in Nigeria. The NMDPRA, in compliance with the legislation, has the authority to oversee and regulate gas pricing to ensure transparency and fairness.
The Authority, in a statement, clarified its role in accordance with Section 167 of the PIA, stating that it is obligated to determine the Domestic Base Price and marketable wholesale price of natural gas supplied to strategic sectors of the Nigerian gas industry. The decision to maintain the prevailing gas prices is in line with the regulatory framework established by the PIA.
“In line with Section 167, the Third and Fourth Schedule of the Act, the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) is obligated to determine the Domestic Base Price and the marketable wholesale price of natural gas supplied to the strategic sectors of the Nigerian gas sector,” explained the Authority.
Furthermore, the NMDPRA clarified that the Domestic Base Price at the marketable gas delivery point, as outlined in Section 167(1) and other provisions of the PIA, will be determined based on regulations that incorporate various considerations.
This assurance from the regulatory authority provides stability and clarity to stakeholders in the gas sector, ensuring that pricing remains consistent and in compliance with the regulations outlined in the PIA. The decision to retain current prices aims to foster a conducive environment for the strategic sectors of the Nigerian economy that rely on natural gas.
