Petrol Under-Dispensing: NMDPRA Cracks Down on Filling Stations Nationwide

Filling station operators across Nigeria are under mounting pressure to recalibrate their dispensing equipment, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority intensifies enforcement against outlets accused of short-changing motorists at the pump.

The regulator’s latest directive follows a series of enforcement operations in which several filling stations were sealed for under-dispensing. Between 2025 and 2026, approximately 20 outlets were shut down for the practice. The NMDPRA has warned that persistent offenders risk losing their operating licences entirely.

In an industry notice issued on Tuesday, the authority directed all retail outlet operators to immediately calibrate and verify their dispensers and totalisers to ensure consumers receive the full quantity of petroleum products for which they pay. The regulator described under-dispensing as a serious breach of consumer trust and warned that outlets found operating improperly calibrated equipment would be required to take immediate corrective action. Persistent or serious violations, it said, would attract sanctions “up to and including revocation of the outlet’s licence.”

The Independent Petroleum Marketers Association of Nigeria said it had circulated the NMDPRA notice to its members nationwide. Chinedu Ukadike, the association’s Publicity Secretary, said marketers operate in a competitive, deregulated environment where product quality, price and quantity determine customer loyalty.

“We are in a very competitive environment. What drives the market is quality of the product, price of the product, and quantity of the product,” Ukadike said. “We are ready for this deregulation and this competition. So nobody will indulge in underselling or cheating customers.”

He acknowledged, however, that sharp practices by individual pump attendants could not be entirely ruled out. “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 said. “We are ready to ensure no customer is cheated at the pumps.”

Another IPMAN major dealer, who spoke on condition of anonymity, said the association had identified lapses among pump attendants and would intensify its orientation programme. “No independent marketer will like to indulge in any sharp practices, but because we employ people who work for us, we have identified some of the lapses, and the executive council will move into this orientation policy to ensure that these sharp practices by some pump attendants are cut out,” he said.

The Petroleum Products Retail Outlets Association of Nigeria also directed its members to inspect their dispensing meters. Speaking on Channels Television’s *The Morning Brief*, PETROAN National President Billy Gillis-Harry said the association convened an emergency meeting of its National Executive Council on Tuesday after receiving the regulator’s warning. The meeting, he said, lasted until about 10 p.m., after which members were instructed to check their dispensing equipment.

“Equipment can be faulty over time because of usage,” Gillis-Harry said, explaining that prolonged use could cause dispensing equipment to develop faults resulting in either under-dispensing or over-dispensing. He assured motorists that PETROAN members would ensure customers received the quantity of fuel they paid for. “PETROAN members will, at all times, insist on making sure that they sell their products one litre for one litre,” he said.

Gillis-Harry advised motorists to monitor the quantity displayed on the dispenser and to request receipts after transactions. He also urged consumers to familiarise themselves with their vehicles’ fuel capacities and compare them with the quantity shown on the 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. He noted that PETROAN works 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.

The NMDPRA’s latest directive follows a pattern of stepped-up enforcement. In February, the authority sealed 11 petrol stations in Rivers State for alleged under-dispensing, failed pumps and other regulatory infractions during an exercise conducted in Obio-Akpor and Port Harcourt City Local Government Areas. The operation was part of the NMDPRA’s “Operation One Litre for One Litre” surveillance initiative. Victor Owodiasa, the authority’s South-South Coordinator, warned at the time that persistent offenders could have their licences revoked and said that while under-dispensing could result from mechanical faults, 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 sealed two filling stations in the Akute/Ajuwon area of Ifo Local Government Area, Ogun State, for under-dispensing and other sharp practices. One of the stations had been sealed at least six times since 2025, the authority said, and had allegedly removed official seals placed on the facility and resumed operations without authorisation.

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

The issue has also touched major oil marketers. In August 2025, NNPC Retail sanctioned employees at its Ikorodu, Lagos, station after an investigation confirmed that a pump attendant had attempted to short-change a customer. The attendant was disengaged, the station manager was suspended, and a formal warning was issued to the dealer.

The NMDPRA has 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.

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

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 a critical component of consumer protection — particularly as motorists 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 result in consumers paying for a volume of petrol they do not receive.

With the latest directive, 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.