NMDPRA proposes new rules to ban fuel price-fixing, artificial scarcity

Nigeria's Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has introduced sweeping draft regulations aimed at eradicating anti-competitive practices within the nation's petroleum industry. The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, explicitly prohibit petroleum companies from engaging in activities such as fixing fuel prices, restricting product supply, allocating markets, and coordinating commercial decisions that could distort competition.

These regulations are a direct response to recent concerns over pricing practices in the downstream sector. Allegations surfaced in July that some major fuel importers were selling imported Premium Motor Spirit at coordinated prices significantly higher than those offered by the Dangote Petroleum Refinery. The NMDPRA's initiative seeks to dismantle a range of anti-competitive conduct, including pump price coordination, the creation of artificial scarcity, bid rigging, customer allocation, exclusive supply arrangements, and the exchange of sensitive commercial information among competitors.

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In compliance with Section 216(1) of the Petroleum Industry Act 2021 requiring consultation with stakeholders before the finalisation of Regulations, the Nigerian Midstream and Downstream Petroleum Regulatory Authority hereby invites licensees, permit holders and other stakeholders to make submissions within twenty-one (21) days from the date of this publication in respect of the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations.

The Authority has formally invited stakeholders, including licensees and permit holders, to submit their comments on the draft regulations within 21 days. This consultation process adheres to Section 216(1) of the Petroleum Industry Act 2021, which mandates stakeholder engagement before finalizing regulations. A public notice, signed by NMDPRA Chief Executive Rabiu A. Umar, detailed the review process and announced that a stakeholders' consultation forum would be held on September 22, 2026, at the Authority's headquarters in Abuja.

Review of the draft regulations indicates the NMDPRA's intent to outlaw virtually all forms of coordinated conduct that could undermine competition in the petroleum market. Part IV of the draft, titled Collusive Agreements and Anti-Competitive Coordination, specifically prohibits petroleum companies from entering into formal or informal agreements designed to influence prices, allocate markets, or manipulate commercial outcomes. The regulations signal a strong regulatory push towards a more competitive and transparent petroleum market in Nigeria.

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Stakeholders are enjoined to visit the Authority’s website to review the proposed Regulations. All submissions are to be made using the format accessible on the Authority’s website and must be received not later than 21 days from the date of this notice.