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NMDPRA threatens licence revocation over fuel under dispensing

KEY POINTS

• NMDPRA says fuel stations found under dispensing petroleum products could lose their licences.
• Retail outlets have been directed to calibrate and verify dispensers and totalisers immediately.
• The regulator says persistent or serious violations will attract sanctions.

MAIN STORY

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned petroleum retail outlets that persistent or serious cases of under dispensing could result in the revocation of their operating licences.

The regulator issued the warning in an industry circular posted on its X handle on Tuesday, following reported cases of consumers receiving less petroleum product than the quantity paid for at retail stations.

NMDPRA described under dispensing as a serious breach of consumer trust and directed retail outlet operators nationwide to immediately check, calibrate and verify their dispensing equipment and totalisers.

The authority said the measure was intended to ensure that dispensers deliver accurate quantities and protect consumers from being short changed during petroleum product transactions.

It said inspections and enforcement activities had been intensified nationwide, with outlets found to be under dispensing or using improperly calibrated equipment required to take immediate corrective action.

Stations found to have compromised dispensing accuracy would also face sanctions, depending on the nature and persistence of the violation.

THE ISSUES

  1. Accurate measurement at fuel stations directly affects consumers because under dispensing means motorists and other buyers receive less product than the quantity for which they have paid.
  2. NMDPRA said retail operators are responsible for ensuring their dispensing equipment and totalisers are properly calibrated and verified, making equipment accuracy a key part of compliance.
  3. The regulator’s warning introduces the possibility of licence revocation for persistent or serious violations, alongside other sanctions available under its regulations.

WHAT’S BEING SAID

“The authority has intensified inspections and enforcement activities nationwide.” – NMDPRA

“Outlets found to be under dispensing, operating with improperly calibrated equipment, or otherwise compromising dispensing accuracy will be required to take immediate corrective action.” – NMDPRA

“Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s license, in line with NMDPRA’s regulations.” – NMDPRA

WHAT’S NEXT

NMDPRA has directed petroleum retail outlet operators to calibrate and verify their dispensers and totalisers immediately.

The regulator also asked MEMAN, DAPPMAN, IPMAN and PETROAN to communicate the directive to their members and support compliance across the industry.

BOTTOM LINE

NMDPRA is tightening enforcement against fuel stations that deliver less petroleum product than consumers pay for. Persistent or serious violations could lead to the revocation of an outlet’s licence.

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