Nigeria proposes ban on fuel price-fixing and market collusion

Nigeria's Federal Government is taking steps to foster fair competition within its vital midstream and downstream petroleum sector. The Nigerian Midstream and Downstream Petroleum Regulatory Authority has put forth new regulations designed to prohibit petroleum companies from engaging in price-fixing, restricting product supplies, or coordinating commercial decisions that could manipulate the market.

The proposed "Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026" specifically target a range of anti-competitive actions. These include pump price coordination, the creation of artificial scarcity, bid-rigging, customer allocation, exclusive supply agreements, and the sharing of sensitive commercial information among competitors. The regulations mandate that refiners, marketers, and other industry players must independently set prices and service terms, avoiding practices that lead to uniform pricing or customer division.

This initiative arrives amid growing concerns about pricing within the downstream sector. Independent marketers have recently alleged that some major fuel importers were selling imported Premium Motor Spirit at coordinated prices higher than those offered by the Dangote Petroleum Refinery. The proposed regulations are intended to ensure a more competitive landscape as domestic refining gains importance and competition intensifies among various industry players.

These proposed rules are currently open for public consultation. The Authority has invited stakeholders to submit comments within 21 days, adhering to the Petroleum Industry Act 2021's requirement for stakeholder engagement before finalizing regulations. The draft regulations are available on the Authority's website for review.

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horizontal agreements between competitors to fix prices, allocate territories, or limit production” and “vertical agreements that result in resale price maintenance, market foreclosure, or tying” would fall under the prohibited arrangements.