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

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed new regulations to combat fuel price-fixing and artificial scarcity in the country's petroleum industry. The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations 2026 seeks to eliminate a range of anti-competitive conduct, including price coordination, artificial scarcity, bid rigging, and the sharing of commercially sensitive information among competitors.

The proposed rules come amid concerns over pricing practices in the downstream petroleum sector, following allegations by independent marketers that major fuel importers were selling Premium Motor Spirit at prices significantly higher than those set by the Dangote Petroleum Refinery.

The NMDPRA invited stakeholders to submit comments on the draft regulations within 21 days, following Section 216(1) of the Petroleum Industry Act 2021, which mandates stakeholder consultation before finalizing regulations. A stakeholders' consultation forum is scheduled for September 22, 2026, at the Authority's headquarters in Abuja.

The proposed regulations would prohibit petroleum companies from entering into formal or informal agreements to influence prices, allocate markets, or manipulate commercial outcomes. Specifically, the draft regulations aim to outlaw price-fixing, coordinated pricing behavior, market allocation arrangements, bid rigging, collective supply restrictions, and the exchange of commercially sensitive information that could reduce competition.