The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled sweeping draft regulations aimed at banning fuel price-fixing, artificial scarcity and other anti-competitive practices in Nigeria’s midstream and downstream petroleum industry.
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 would prohibit petroleum companies from coordinating fuel prices, restricting product supply, sharing markets, rigging bids or exchanging commercially sensitive information capable of distorting competition.
The move comes amid renewed concerns over pricing practices in the downstream petroleum sector following allegations by independent marketers in July that some major fuel importers were selling imported Premium Motor Spirit (petrol) at coordinated prices significantly above those offered by the Dangote Petroleum Refinery.
In a public notice issued on Thursday and posted on its official X handle, the Authority invited licensees, permit holders and other stakeholders to submit comments on the proposed regulations within 21 days, in line with Section 216(1) of the Petroleum Industry Act (PIA) 2021, which requires stakeholder consultation before regulations are finalised.
The notice, signed by the Authority’s Chief Executive, Rabiu A. Umar, stated that the draft regulations are available on the Authority’s website, while a stakeholders’ consultation forum has been scheduled for September 22, 2026, at the NMDPRA headquarters in Abuja.
It read in part, “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.”
A review of the draft by The PUNCH showed that the regulator intends to outlaw virtually every form of coordinated conduct capable of weakening competition in the petroleum market.
Under Part IV of the draft, titled Collusive Agreements and Anti-Competitive Coordination, petroleum companies would be prohibited from entering into any formal or informal agreement designed to influence prices, allocate markets or manipulate commercial outcomes.
The draft states: “No licensee, market participant, or group of undertakings in the midstream or downstream petroleum sector shall enter into any agreement, arrangement, understanding, or concerted practice, whether formal or informal, written or oral, explicit or tacit, that has the object or effect of preventing, restricting, or distorting competition.”
Among the prohibited practices is price-fixing or coordinated pricing behaviour.
According to the draft, “Price-Fixing or Coordinated Pricing Behaviour, agreeing, aligning, or coordinating prices or any pricing element, including pump prices, ex-depot prices, margins, discounts, surcharges, freight/delivery charges, or pricing formulas/benchmarks,” would be prohibited.
If adopted, petroleum companies would no longer be permitted to coordinate pump prices, ex-depot prices, freight charges, discounts, pricing benchmarks or any other commercial elements capable of influencing retail fuel prices.
The regulations would also outlaw market allocation arrangements, where competitors divide customers, geographical territories, product lines or supply areas among themselves instead of competing freely.
Similarly, bid rigging and collusive tendering during procurement processes would be prohibited.
To address artificial scarcity, the Authority is proposing strict sanctions against competitors that jointly reduce production, petroleum imports, throughput or product supply to manipulate prices or create fuel shortages.
The draft also targets tacit collusion, where companies avoid explicit agreements but signal future pricing intentions or commercial strategies through public statements, trade associations or other indirect channels.
In addition, competitors would be barred from exchanging commercially sensitive information, including future pricing plans, production schedules, customer lists, marketing strategies and bidding intentions where such disclosures could undermine competition.
The proposed framework also seeks to curb restrictive commercial arrangements that limit market access for smaller operators.
The latest proposal marks another significant regulatory intervention by the NMDPRA since the implementation of the Petroleum Industry Act.
In recent years, the Authority has introduced regulations covering environmental protection, operational safety, decommissioning of petroleum facilities and environmental remediation funding as part of efforts to strengthen governance across the petroleum value chain.
The draft competition regulations also come as the regulator pushes for a more transparent petroleum pricing regime. Recently, the NMDPRA disclosed that it was exploring the establishment of an African petroleum products reference price benchmark to reflect regional market realities and improve price transparency across the continent.
If adopted after stakeholder consultations, the regulations would provide the Authority with a comprehensive legal framework to investigate and sanction anti-competitive conduct in Nigeria’s midstream and downstream petroleum sectors, strengthening the competition provisions of the Petroleum Industry Act and promoting a more transparent, efficient and consumer-oriented fuel market.
