NMDPRA cracks down on filling stations for under-dispensing petrol

Petrol under-dispensing: NMDPRA cracks down on filling stations

Filling station operators across the country are under pressure to check and recalibrate their dispensing equipment as the Nigerian Midstream and Downstream Petroleum Regulatory Authority intensifies its crackdown on outlets accused of under-dispensing petrol to motorists.

The regulator’s latest directive followed a series of enforcement operations carried out in the past, in which several filling stations were sealed for short-measuring customers, with the authority warning that persistent offenders risk losing their operating licences.

About 20 filling stations were reportedly sealed by the regulator between 2025 and 2026 for under-dispensing.

Following the NMDPRA warning, petroleum marketers said they had risen to ensure fuel retailers give customers the right value for their money. While some of them said pump attendants might be responsible for such sharp practices, others said faulty fuel pumps could be responsible for under-dispensing.

The NMDPRA, in an industry notice issued on Tuesday, directed all retail outlet operators to immediately calibrate and verify their dispensers and totalisers to ensure that consumers receive the full quantity of petroleum products for which they pay.

The authority said it had observed incidents of under-dispensing at retail outlets nationwide, describing the practice as a serious breach of consumer trust.

The regulator warned that outlets found under-dispensing, operating improperly calibrated equipment or otherwise compromising dispensing accuracy would be required to take immediate corrective action.

It added that persistent or serious violations would attract sanctions, “up to and including revocation of the outlet’s licence”.

IPMAN alerts members
Reacting to the directive, the Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the association had circulated the NMDPRA notice to its members nationwide.

Ukadike said marketers were operating in a competitive environment where product quality, price and quantity were important factors in attracting and retaining customers.

He explained that the deregulated nature of the downstream sector made it important for independent marketers to protect their reputation and retain customers.

“I’m aware of the NMDPRA notice. We have also distributed the information to our members nationwide, drawing their attention to the NMDPRA notice. But I still want to let you know that we are in a very competitive environment. What drives the market is: one, quality of the product; two, price of the product; three, quantity of the product.

“These are the things that drive this kind of market now. We are in a deregulated economy. And what drives your market is your ability to convince your customers and sustain your customers. You have seen the innovations that we have done in all our businesses nationwide. We are ready for this deregulation and this competition. So nobody will indulge in underselling or cheating customers,” Ukadike said.

However, he acknowledged that sharp practices by individual pump attendants could not be completely ruled out, saying IPMAN was working to reorient its members and their employees.

“But sometimes you cannot rule out some sharp practices from some of our pump attendants, which is why we are trying to go nationwide now, to see how we can reorientate them, to be steadfast and truthful to customers,” he noted.

Ukadike disclosed that the association would not allow customers to be cheated at the pump, stressing that marketers had a responsibility to ensure that their dispensing equipment remained accurate.

“I don’t know if there is any reason that could prompt a manager to adjust the pump below the normal value. But this is an announcement by NMDPRA. We have set out our eyes to ensure that such a thing does not happen. And if there are sharp practices, we are ready to curtail them. So, some pump attendants adjusting prices and engaging in sharp practices may not be ruled out. But we are ready to ensure no customer is cheated at the pumps,” he said.

He added, “Don’t quote me incorrectly. I say you cannot rule out sharp practices from a few individuals like some attendants. For us, the independent marketers, we want to build our brand, and the three cardinal points of building our brand are low pricing, quality, and service.”

Another IPMAN major dealer, who spoke in confidence due to the lack of authorisation to speak on the matter, stated that the association had identified some lapses among pump attendants and would intensify its orientation programme to address the problem.

“No independent marketer will like to indulge in any sharp practices, but because we employ people who are working for us, we have identified some of the lapses, and the executive council will move into this orientation policy to ensure that some of these sharp practices by some pump attendants will be cut out,” he said.

The Petroleum Products Retail Outlets Association of Nigeria also directed its members to inspect their dispensing meters following the NMDPRA warning.

Speaking on Channels Television’s The Morning Brief on Wednesday, the National President of PETROAN, Billy Gillis-Harry, said the association had convened an emergency meeting of its National Executive Council on Tuesday after receiving the regulator’s warning.

He said the meeting lasted until about 10 pm, after which members were instructed to check their dispensing equipment. “PETRON circulated a message around the country, calling our members to check their meters as quickly as possible,” Gillis-Harry said.

He explained that prolonged use could cause dispensing equipment to develop faults, resulting in either under-dispensing or over-dispensing. “Equipment can be faulty over time because of usage,” he said.

Gillis-Harry assured motorists that PETROAN members would ensure that customers received the quantity of fuel they paid for. “But I can tell you that PETRON members will, at all times, insist on making sure that they sell their products one litre for one litre,” he said.

He advised motorists to monitor the quantity displayed on the dispenser whenever they buy fuel and request receipts after transactions.

The PETROAN president also urged consumers to familiarise themselves with their vehicles’ fuel capacities and compare them with the quantity shown on the dispensing meter.

“Oftentimes, we educate our staff to call the attention of the customer to check the meter while it is being dispensed. And also to get the customer to check after the product has been dispensed,” he said.

Gillis-Harry said PETROAN worked with the Weights and Measures Division of the Ministry of Industry, Trade and Investment and the NMDPRA on the maintenance and accuracy of dispensing meters.

“PETRON consistently works with the Weights and Measures Division of the Ministry of Trade and Investment, and also the NMDPRA. These are the two regulatory authorities that ensure that our meters are functional. And they are up to date and accurate,” he said.

He stressed that the association had commenced engagement with its members following the regulator’s warning. “We took what the NMDPRA called our attention to yesterday very seriously. And we already started working on that,” he said.

NMDPRA seals stations
The NMDPRA’s latest directive comes after the regulator had stepped up enforcement against filling stations found to be short-measuring customers.

In February, the authority sealed 11 petrol stations in Rivers State for alleged under-dispensing, failed pumps and other regulatory infractions.

The exercise, conducted in Obio-Akpor and Port Harcourt City Local Government Areas, was part of the NMDPRA’s “Operation One Litre for One Litre” surveillance initiative. The authority said the affected stations would remain shut until the integrity of their pumps was confirmed.

The NMDPRA’s South-South Coordinator, Victor Owodiasa, warned at the time that persistent offenders could have their licences revoked.

He also said under-dispensing could sometimes result from mechanical faults, but insisted that operators had a responsibility to regularly check their meters rather than wait for regulators to detect the problem.

In July, the NMDPRA Abeokuta Field Office also sealed two filling stations in the Akute/Ajuwon area of Ifo Local Government Area of Ogun State for under-dispensing and other sharp practices.

The authority said one of the stations had repeatedly violated regulatory requirements, including allegedly removing official seals placed on the facility and resuming operations without authorisation. It disclosed that the station had been sealed at least six times since 2025.

The regulator warned that further violations could lead to penalties, suspension of operating licences and criminal prosecution where applicable.

Earlier, in October 2025, the NMDPRA Eket Field Office sealed five petrol stations in Akwa Ibom State over various infractions, including alleged under-dispensing, diversion and operating without a licence.

The issue has also affected major oil marketers. In August 2025, NNPC Retail sanctioned employees at its Ikorodu, Lagos, station after an investigation confirmed an incident involving a pump attendant who allegedly attempted to short-change a customer.

The company said the attendant was disengaged, the station manager was suspended, and a formal warning was issued to the dealer.

With the latest directive, the NMDPRA has now directed industry associations, including IPMAN, PETROAN, the Major Energy Marketers Association of Nigeria and the Depot and Petroleum Products Marketers Association of Nigeria, to notify their members and support compliance.

The regulator said its intensified inspections were aimed at protecting consumers, promoting transparency and ensuring that motorists receive the quantity of petroleum products for which they pay.

The directive comes against the backdrop of the Federal Government’s broader efforts to strengthen regulatory oversight of the downstream petroleum sector following the removal of the petrol subsidy and the transition to a market-based pricing regime.

With petrol now sold at prices determined largely by market conditions, accurate dispensing has become an important part of consumer protection, particularly as motorists and other users pay varying pump prices across locations.

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 therefore result in consumers paying for a volume of petrol that they do not receive.

The NMDPRA said its latest enforcement action was aimed at preventing such practices and improving confidence in petroleum product transactions. The Authority also directed major industry associations to ensure that their members comply with the directive.

“MEMAN, DAPPMAN, IPMAN and PETROAN are kindly requested to promptly notify their members of this directive and to support full compliance across the industry,” the regulator stated.

The NMDPRA stressed that consumer protection remained a key part of its regulatory responsibility, particularly in ensuring that petroleum transactions were transparent and accurately measured.

It said, “NMDPRA remains committed to protecting consumers, promoting transparency, and upholding the integrity of petroleum product transactions nationwide.”

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.