The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed sweeping new regulations that would outlaw fuel price fixing, coordinated supply restrictions and other anti-competitive practices in Nigeria's petroleum industry as the regulator seeks to strengthen competition and improve transparency across the downstream and midstream sectors.
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 were released for public consultation on Thursday, with the Authority inviting licence holders, permit holders and other industry stakeholders to submit comments within 21 days in line with Section 216(1) of the Petroleum Industry Act (PIA) 2021.
According to the NMDPRA, a stakeholders' consultation forum on the draft regulations will take place at its Abuja headquarters on September 22, 2026, before the rules are finalised.
At the heart of the proposed framework is a prohibition against any agreement or coordinated conduct capable of distorting competition in Nigeria's petroleum market.
The draft regulation states: "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 Authority is specifically targeting price-fixing arrangements involving pump prices, ex-depot prices, margins, discounts, surcharges, freight charges and pricing formulas.
Under the proposal, "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," would be prohibited.
The draft regulations also seek to outlaw market allocation agreements in which operators divide customers, territories or product lines among themselves, as well as bid-rigging and collusive tendering during procurement exercises.
Similarly, petroleum companies would be barred from collectively reducing production, imports, throughput or product supply in ways that create artificial scarcity, manipulate prices or distort market conditions.
The Authority is also proposing restrictions on tacit collusion and price signalling, including the exchange of commercially sensitive information such as future pricing plans, production volumes, customer lists and bidding strategies through trade associations, public statements or indirect communications.
Beyond pricing, the regulations seek to curb exclusive supply agreements, restrictive long-term contracts and take-or-pay obligations that could prevent independent marketers and smaller operators from accessing petroleum products or critical infrastructure.
The draft further proposes tighter scrutiny of tying and bundling arrangements, where dominant operators compel buyers or dealers to purchase unrelated products or services as a condition for accessing fuel supplies, storage facilities or transportation infrastructure.
The proposal follows renewed concerns over alleged coordinated fuel pricing in the downstream market. In July, oil marketers accused major fuel importers, including AA Rano and Matrix, of fixing the price of imported petrol at about ₦1,350 per litre, significantly above prices reportedly offered by Dangote Petroleum Refinery.
The NMDPRA said the broader objective of the regulations is to prevent dominant market participants from abusing market power, improve consumer choice and create a predictable investment environment that supports fair competition throughout Nigeria's petroleum value chain.
The proposed framework forms part of the Authority's wider regulatory reforms under the Petroleum Industry Act, following earlier regulations covering environmental protection, operational safety, decommissioning of petroleum facilities and environmental remediation. The Authority has also indicated that it is working towards establishing a credible African petroleum pricing benchmark to improve transparency across regional energy markets.