Nigeria's petroleum regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has published draft regulations designed to stamp out anti-competitive practices in the oil and gas sector, including petrol price-fixing, market-sharing, and bid-rigging. The draft framework, released on Thursday, August 6, 2026, targets collusive behaviour among petroleum companies across the midstream and downstream value chain.
Key Provisions of the Draft Regulations
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, derive their legal backing from Section 216(1) of the Petroleum Industry Act (PIA) 2021. The rules aim to prevent conduct that could distort the market, harm consumers, or discourage fresh investment in the sector.
The draft regulations explicitly prohibit any licensee, market participant, or group of companies from entering into agreements—whether written, oral, formal, or informal—that prevent, restrict, or distort competition. This includes coordinated practices on pump prices, ex-depot prices, margins, discounts, surcharges, freight charges, and pricing formulas.
Ban on Market Division and Bid-Rigging
Companies would also be barred from dividing customers, territories, product lines, or geographic markets among themselves. The rules further outlaw bid-rigging and collusive tendering during procurement processes. Additionally, coordinated supply restrictions—such as jointly cutting production, imports, throughput, or fuel supply to create artificial shortages or manipulate prices—are strictly prohibited.
The draft also targets tacit collusion. Operators cannot use public statements, trade associations, or indirect channels to share sensitive commercial information, including future prices, production plans, customer lists, or bidding strategies.
Stakeholder Consultation and Timeline
NMDPRA has invited industry stakeholders to submit written comments within 21 days from the date of publication. As part of the consultation process, the authority will host a stakeholders' forum at its Abuja headquarters on September 22, 2026, to gather input before formally adopting the regulations.
According to the regulator, the framework aims to create a petroleum market where businesses compete fairly, efficiency improves, and consumers benefit from better service delivery and greater pricing transparency across the value chain.
Submission Guidelines
In a statement, NMDPRA said: "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."
The statement added: "Submissions or enquiries should be addressed to the Authority Secretary and Legal Adviser, through stakeholdersconsultation@nmdpra.gov.ng."
Context: Recent Petrol Price Adjustments
The move comes amid ongoing changes in Nigeria's fuel market. Earlier, Legit.ng reported that Dangote Petroleum Refinery reduced its ex-depot prices for both petrol and diesel. The new gantry price for premium motor spirit (PMS) is now set at N1,165 per litre, down from N1,215. Diesel will sell at N1,570 per litre, compared to the previous rate of N1,650. The reductions amount to N50 per litre on petrol and N80 per litre on diesel.
These price adjustments reflect the dynamic nature of the downstream sector, which the new NMDPRA regulations seek to make more competitive and transparent.
