The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is proposing new rules that would prohibit petroleum companies from coordinating fuel prices, restricting supply, or engaging in market-sharing arrangements that distort competition across Nigeria’s midstream and downstream oil and gas sector.
The proposal is contained in the newly released Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, a draft framework designed to strengthen competition, prevent abuse of market power, and ensure a more transparent and competitive petroleum market.
NMDPRA, in a public notice issued on Thursday, August 6, invited licensees, permit holders, and other stakeholders to submit comments on the proposed regulations within 21 days, in line with Section 216(1) of the Petroleum Industry Act (PIA) 2021, which requires stakeholder consultation before regulations are finalised.
The Authority said a stakeholders’ consultation forum on the proposed regulations will be held at its Abuja headquarters on September 22, 2026.
What they are saying
According to Part IV of the draft regulations on Collusive Agreements and Anticompetitive Coordination, the Authority is seeking to prohibit any form of coordinated behaviour among petroleum companies that could undermine competition.
The regulations state:
- “No licensee, market participant, or group of undertakings in the midstream or downstream petroleum sector shall enter into any agreement, arrangement, understanding, or concerted practice—whether formal or informal, written or oral, explicit or tacit—that has the object or effect of preventing, restricting, or distorting competition.”
The draft specifically targets price-fixing and coordinated pricing behaviour, including agreements on pump prices, ex-depot prices, margins, discounts, surcharges, freight charges, and pricing formulas.
It also prohibits market allocation, where companies divide customers, territories, product lines, or geographic areas among themselves, as well as bid-rigging and collusive tendering in procurement processes.
- “Price-Fixing or Coordinated Pricing Behaviour – agreeing, aligning, or coordinating prices or any pricing element, including pump prices, ex-depot prices, margins, discounts, surcharges, freight/delivery charges, or pricing formulas/benchmarks,” is strictly prohibited, the draft regulation stated.
Another major provision seeks to stop collective supply restrictions, where companies jointly reduce production, imports, throughput, or supply in ways that manipulate prices, create artificial scarcity, or distort market conditions.
The Authority is also targeting tacit collusion and price signalling, including the use of public statements, trade associations, or indirect communications to influence competitors’ pricing decisions or exchange commercially sensitive information such as future prices, production plans, customer lists, or bidding strategies.
Backstory
The proposed regulations come just weeks after allegations of coordinated fuel pricing resurfaced in Nigeria’s downstream petroleum market.
- In July, oil marketers accused major fuel importers, including AA Rano and Matrix, of fixing the price of imported petrol at about N1,350 per litre, significantly above the price reportedly offered by Dangote Petroleum Refinery.
- Beyond coordinated pricing, the draft regulations also take aim at exclusive supply arrangements and restrictive long-term contracts that could prevent independent marketers or smaller operators from accessing fuel or infrastructure.
- Under Part V on Anti-Competitive Supply and Trading Practices, the Authority proposes restrictions on exclusive supply agreements, excessively long-term contracts, and take-or-pay obligations that effectively lock buyers into a single supplier or make it difficult for competitors to enter the market.
The draft further proposes tighter scrutiny of tying and bundling arrangements, where companies with significant market power require dealers or buyers to purchase unrelated products or services as a condition for accessing fuel supply or infrastructure services.
The broader objective is to prevent dominant market participants from using contractual arrangements, infrastructure control, or commercial incentives to foreclose competition and limit consumer choice.
What you should know
The proposed anti-competitive regulations form part of a broader set of reforms through which the NMDPRA has been reshaping the regulatory framework for Nigeria’s midstream and downstream petroleum sector.
More recently, the NMDPRA also said it is exploring pathways for establishing a credible African reference price benchmark that reflects regional market realities and supports more transparent pricing mechanisms across the petroleum value chain.
SOURCE: Nairametrics