NMDPRA Moves To Stop Petrol Price Fixing in Nigeria
- Nigeria's petroleum regulator released a draft framework targeting anti-competitive behaviour across the midstream and downstream sector
- The proposed rules cover price-fixing, market-sharing, bid-rigging, and coordinated supply restrictions among petroleum companies
- NMDPRA has invited industry stakeholders to submit comments within 21 days and will hold a forum in Abuja on September 22, 2026
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's oil and gas regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has released draft regulations aimed at banning petroleum companies from colluding on prices, dividing markets among themselves, or jointly restricting fuel supplies across the country.
The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, was published on Thursday, August 6, 2026.
Source: Getty Images
The authority gave industry stakeholders 21 days to submit written comments before the framework is finalised.
The proposed rules derive their authority from Section 216(1) of the Petroleum Industry Act (PIA) 2021 and are intended to prevent conduct that could distort the market, harm consumers, or discourage fresh investment in the sector.
What the Draft Rules Prohibit
The draft regulations bar any licensee, market participant, or group of companies in the midstream or downstream petroleum sector from entering into agreements or arrangements, whether written, oral, formal, or informal, that prevent, restrict, or distort competition.
On pricing, the rules specifically target coordinated practices involving pump prices, ex-depot prices, margins, discounts, surcharges, freight charges, and pricing formulas. Companies would also be barred from dividing customers, territories, product lines, or geographic markets among themselves, as well as from engaging in bid-rigging or collusive tendering during procurement, the Cable reports.
The draft further prohibits coordinated supply restrictions, meaning operators cannot jointly cut production, imports, throughput, or fuel supply in ways that create artificial shortages or manipulate prices.
Tacit collusion through public statements, trade associations, or indirect channels used to share sensitive commercial information such as future prices, production plans, customer lists, or bidding strategies would also be outlawed.
Source: Getty Images
Stakeholder Forum Planned for September
As part of the consultation process, NMDPRA said it would host a stakeholders' forum at its Abuja headquarters on September 22, 2026, to gather industry input ahead of formally adopting the regulations.
The authority said the overall goal of the framework is to create a petroleum market where businesses compete fairly, efficiency improves, and consumers see better service delivery and greater pricing transparency across the value chain.
The regulations will undergo further stakeholder review before they take effect.
It added:
"Stakeholders are enjoined to visit the Authority's website www.nmdpra.gov.ng 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.
"Submissions or enquiries should be addressed to the Authority Secretary and Legal Adviser, through stakeholdersconsultation@nmdpra.gov.ng."
Dangote announces new petrol price
Earlier, Legit.ng reported that Dangote Petroleum Refinery has reduced its ex-depot prices for both petrol and diesel, with the new gantry price for premium motor spirit (PMS) now set at N1,165 per litre, down from N1,215.
Diesel will sell at N1,570 per litre, compared to the previous rate of N1,650.
The reductions amount to N50 per litre on petrol and N80 per litre on diesel.
Source: Legit.ng
