FG moves to stop fuel price fixing as NMDPRA issues draft competition rules
By Aboki Forex —
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has released draft regulations that would ban petroleum companies from fixing prices, sharing markets, rigging bids, or jointly restricting fuel supply. The framework was published on Thursday, August 6, 2026, and stakeholders have 21 days to submit written comments before it is finalised.
What the draft rules target
The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, is based on Section 216(1) of the Petroleum Industry Act, 2021. It seeks to prevent conduct that could distort the market, harm consumers, or discourage fresh investment in the sector.
Under the proposed rules, any licensee, market participant, or group of companies in the midstream or downstream petroleum sector cannot enter into agreements, whether written, oral, formal, or informal, that prevent, restrict, or distort competition. The pricing rules specifically cover 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. Bid-rigging and collusive tendering during procurement are also prohibited, as are coordinated supply restrictions such as jointly cutting production, imports, throughput, or fuel supply to create artificial shortages or manipulate prices.
Tacit collusion and consultation
The draft also outlaws tacit collusion through public statements, trade associations, or indirect channels used to share sensitive commercial information like future prices, production plans, customer lists, or bidding strategies.
NMDPRA has invited industry stakeholders to a forum at its Abuja headquarters on September 22, 2026, to gather input before the regulations are formally adopted. The authority said the overall goal is to create a petroleum market where businesses compete fairly, efficiency improves, and consumers see better service delivery and pricing transparency across the value chain.
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 [email protected]."
What it means for fuel prices
The move comes days after Dangote Petroleum Refinery cut its ex-depot prices for petrol and diesel. Petrol now sells at N1,165 per litre, down from N1,215, while diesel dropped from N1,650 to N1,570 per litre. The reductions amount to N50 per litre on petrol and N80 on diesel.
If the NMDPRA framework is enforced, it could strengthen competition in the downstream sector and give consumers more protection against coordinated price hikes. That would be a positive signal for household budgets and for businesses that rely on fuel for power and transport.