NMDPRA Proposes Anti-monopoly Rules as Court Backs Fuel Importers
- NMDPRA has proposed new rules to ban fuel price fixing, hidden charges and other anti-competitive practices
- Draft regulations would require fair access to pipelines, depots, jetties and other essential petroleum infrastructure
- Court orders continued import licences for three marketers as Dangote separately challenges fuel imports
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed new rules to tackle price fixing, abuse of market dominance and other practices that undermine competition in Nigeria’s petroleum industry.
The draft regulations would prohibit agreements among competing operators to coordinate fuel prices, restrict supplies or divide customers and territories, while opening critical infrastructure to qualified businesses.
Source: Getty Images
The proposals come amid a court ruling backing continued fuel import licensing for three marketers, a development that runs counter to Dangote Refinery’s campaign to restrict imports.
However, the reported judgment arose from the marketers’ case against NMDPRA, rather than a ruling dismissing Dangote’s own lawsuit.
NMDPRA targets price fixing and hidden charges
Speaking at a stakeholders’ consultation forum in Abuja, NMDPRA Chief Executive, Mallam Rabiu Umar, said the proposed framework was developed under Section 216 of the Petroleum Industry Act (PIA), 2021.
The draft, titled “Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026”, seeks to strengthen competition, improve transparency and promote fair access to essential infrastructure.
Umar said stakeholders’ submissions would be considered before the regulations are finalised.
NMDPRA Secretary and Legal Adviser, Dr Joseph Tolorunse, said the framework contains 138 regulations across 23 parts, translating the PIA’s competition provisions into detailed, enforceable rules.
Under the proposals, competing operators would be barred from coordinating pump and ex-depot prices, profit margins, discounts, freight charges, supply volumes and tender submissions.
Service providers would also have to disclose tariffs, fees and general operating conditions. Hidden surcharges, undisclosed preferential arrangements and informal agreements altering published access terms would be prohibited.
Pipelines, depots and jetties face access rules
Owners or controllers of essential petroleum infrastructure would be required to provide qualified third parties with access on transparent and non-discriminatory terms.
Facilities covered include pipelines, storage terminals, jetties, bulk-loading facilities and depots.
According to Tolorunse, restrictions would only be permitted on legitimate technical, safety or creditworthiness grounds.
He clarified that becoming a dominant operator would not itself constitute an offence. The regulations would instead target the abuse of that position to undermine fair competition.
Court backs fuel import licences
In a related development on September 28, the Federal High Court in Abuja ordered NMDPRA to continue granting petroleum product import licences to Matrix Energy, AA Rano and AYM Shafa, subject to their meeting applicable requirements.
Justice Inyang Ekwo reportedly held that the regulator’s refusal to issue or renew the companies’ licences was inconsistent with the PIA.
The judgment also affirmed the authority’s responsibility to promote competition and prevent abuse of dominant positions.
The decision strengthens importers’ position in the wider dispute over domestic refining and foreign fuel supplies.
Source: Getty Images
Dangote has separately challenged import licences, arguing that imports should be permitted only where domestic supply falls short, Reuters reports.
For consumers, the proposed rules are intended to curb practices that distort fuel pricing and access to supplies.
They remain subject to consultation and finalisation, however, and their announcement does not establish a new pump price or guarantee immediate reductions at filling stations across Nigeria.
Dangote crashed petrol prices below landing costs
Legit.ng earlier reported that Oil marketers are increasingly lifting petroleum products from the Dangote Petroleum Refinery as the cost of importing petrol and diesel remains above the refinery’s selling prices.
The widening price advantage comes as some filling stations have begun selling petrol below ₦1,400 per litre, offering motorists some relief after weeks of elevated fuel prices.
Source: Legit.ng
