NMDPRA Moves to Ban Fuel Price-Fixing, Artificial Scarcity

NMDPRA Moves to Ban Fuel Price-Fixing, Artificial Scarcity

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled draft regulations aimed at curbing anti-competitive practices in the petroleum sector, including fuel price-fixing and artificial scarcity.The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 would outlaw collusive agreements among petroleum companies, covering pump price coordination, bid rigging, market allocation, exclusive supply deals, and the exchange of sensitive commercial information.The move follows recent allegations by independent marketers that major fuel importers were coordinating pump prices above those of the Dangote Refinery.In a public notice signed by Chief Executive Rabiu A. Umar, the Authority invited stakeholders to submit comments within 21 days, in line with Section 216(1) of the Petroleum Industry Act 2021. A consultation forum is scheduled for September 22, 2026, at the NMDPRA headquarters in Abuja.A review of the draft shows sweeping prohibitions:Price-fixing banning coordinated pump prices, ex-depot prices, margins, discounts, and freight charges.Market allocation prohibiting competitors from dividing customers, territories, or supply areas.Bid rigging outlawing collusive tendering in procurement.Supply restrictions preventing companies from jointly reducing imports or production to create scarcity.Tacit collusion  banning indirect coordination through trade associations or public signaling.The Authority also seeks to block restrictive arrangements that limit smaller operators’ access to the market. If adopted, the regulations would give NMDPRA stronger powers to investigate and sanction anti-competitive conduct, reinforcing the Petroleum Industry Act’s competition provisions.This initiative builds on recent reforms, including environmental protection and operational safety rules, and reflects NMDPRA’s push for a transparent pricing regime. The regulator has also floated the idea of an African petroleum products benchmark to improve price transparency across the continent.

Source: NMDPRA Moves to Ban Fuel Price-Fixing, Artificial Scarcity



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