The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has uncovered incidents of under-dispensing of petroleum products at retail outlets across the country. The regulator views this as a serious breach of consumer trust and has ordered immediate checks and calibration of fuel dispensers nationwide. This move aims to ensure that consumers receive the quantity of petroleum products for which they have paid. The NMDPRA issued the directive in an industry circular on Tuesday.

The regulator has directed all retail outlet operators to immediately check and calibrate their dispensing equipment to ensure accurate measurement. The NMDPRA warned that outlets caught under-dispensing petroleum products risk sanctions, including licence revocation. The Authority has intensified inspections and enforcement operations nationwide and will take action against stations found to be short-changing consumers. This directive comes against the backdrop of the Federal Government's broader efforts to strengthen regulatory oversight of the downstream petroleum sector.

Under-dispensing occurs when a retail outlet's dispensing equipment delivers less product than the quantity displayed or paid for by the consumer. Faulty or improperly calibrated pumps can result in consumers paying for a volume of petrol that they do not receive. The NMDPRA's latest enforcement action aims to prevent such practices and improve confidence in petroleum product transactions. The regulator stressed that consumer protection remains a key part of its regulatory responsibility.

The NMDPRA has specifically called on major industry associations, including the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria, and the Petroleum Retail Outlet Owners Association of Nigeria, to communicate the directive to their members. The regulator directed these associations to ensure that their members comply with the directive.

The directive means filling stations now face closer scrutiny of their dispensing equipment, while operators will be expected to correct any identified defects promptly or risk regulatory sanctions. The NMDPRA remains committed to protecting consumers, promoting transparency, and upholding the integrity of petroleum product transactions nationwide. This move places the accuracy of fuel dispensing equipment at filling stations under renewed regulatory scrutiny.

With petrol now sold at prices determined largely by market conditions, accurate dispensing has become an important part of consumer protection. Motorists and other users pay varying pump prices across locations, making it essential to ensure that consumers receive the full value of the product they pay for. The NMDPRA's enforcement action aims to prevent under-dispensing and promote transparency in the downstream petroleum sector.

The regulator warned that repeated or serious violations could lead to the withdrawal of operating licences. The NMDPRA's inspections and enforcement activities will continue nationwide to ensure compliance with the directive. The Authority's efforts aim to strengthen regulatory oversight and promote consumer protection in the downstream petroleum sector.

Key points

  • The NMDPRA has ordered immediate checks and calibration of fuel dispensers nationwide to prevent under-dispensing.
  • The regulator has warned that outlets caught under-dispensing petroleum products risk sanctions, including licence revocation.
  • The NMDPRA remains committed to protecting consumers, promoting transparency, and upholding the integrity of petroleum product transactions nationwide.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.