The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is proposing new rules aimed at preventing petroleum companies from fixing fuel prices, creating artificial shortages and engaging in other practices that could weaken competition in the downstream sector.
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 would affect refiners, fuel marketers and other operators in Nigeria’s midstream and downstream petroleum industry.
Under the draft rules, companies would be expected to independently determine their prices and commercial terms. Practices such as price fixing, market sharing, bid-rigging, customer allocation, exclusive supply arrangements and the exchange of sensitive business information among competitors would be prohibited.
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The proposed regulation also seeks to prevent agreements that could create artificial uniformity in fuel prices or restrict consumers’ access to competing products.
It states that “horizontal agreements between competitors to fix prices, allocate territories, or limit production” would be prohibited. It also targets vertical arrangements involving resale price maintenance, market foreclosure and tying.
The proposed rules come at a time when competition in Nigeria’s petrol market has intensified, particularly with the growth of domestic refining and increased competition between local refiners, importers and marketers.
The move also follows concerns raised by some independent petroleum marketers in July over alleged coordinated pricing by major fuel importers, with claims that some imported petrol was being sold at prices significantly higher than products from the Dangote Petroleum Refinery.
However, the proposed regulations are not yet law. In a public notice issued on Thursday, the NMDPRA invited licensees, permit holders and other industry stakeholders to submit their views on the draft within 21 days.
The consultation is being conducted in line with Section 216(1) of the Petroleum Industry Act 2021, which requires stakeholder consultation before petroleum regulations are finalised.
The notice, signed by the Authority’s Chief Executive, Rabiu Umar, urged stakeholders to study the draft regulations and submit their observations through the prescribed format.
The Authority also announced that a stakeholders’ consultation forum on the proposed rules would be held on September 22, 2026, at its headquarters in Abuja.
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The notice said the consultation was necessary “before the finalisation of Regulations,” urging stakeholders to submit their views within the stipulated 21-day period.
If eventually approved, the regulations would give the NMDPRA a framework to tackle coordinated conduct that could undermine competition in the petroleum market.
The draft rules, particularly under the section on Collusive Agreements and Anti-Competitive Coordination, seek to prevent companies from entering into either formal or informal arrangements designed to influence prices, divide markets or manipulate commercial outcomes.
The proposal is expected to generate further discussion among petroleum operators as the Federal Government moves to strengthen competition and improve transparency in the downstream oil sector.
