NMDPRA’s new fuel rules trigger pushback from marketers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Monday convened stakeholders and marketers following several reactions to its proposed Prevention of Anti-Competitive Practices and Behaviour Regulations 2026.

The stakeholders’ meeting, which featured oil and gas stakeholders, was held at the NMDPRA headquarters in Abuja and was attended by Nairametrics.

The development comes days after the Authority announced that it was 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 draft framework was designed to strengthen competition, prevent abuse of market power, and ensure a more transparent and competitive petroleum market.

Nairametrics gathered on Monday that, following the release of the draft regulations, about 20 comments had been forwarded to the Authority by different companies and stakeholders.

Stakeholders meet over proposed regulations

Speaking at the gathering, the Chief Executive of the NMDPRA, Rabiu Umar, said the proposed regulations were intended to prevent abuse of dominance while ensuring fair and non-discriminatory access to petroleum infrastructure.

He assured stakeholders that the final draft of the regulations would promote transparency, market efficiency, investment, and innovation in the sector.

He urged stakeholders to put forward more reviews and recommendations on the proposed framework and identify provisions that required clarification, refinement, or practical alternatives.

• “The Authority recognises that effective regulation must provide regulatory certainty, support investment and innovation, promote efficient markets, and protect the integrity of the petroleum sector,” he added.
• Umar recalled that the Authority had recently signed a Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen regulatory coordination and fair market practices in the petroleum sector.

He stressed that the mandates of both institutions were complementary, adding that the partnership between the two institutions would deepen regulatory coordination in the midstream and downstream petroleum industry.

• On his part, the Authority Secretary and NMDPRA Board Legal Adviser, Dr Joseph Tolorunse, welcomed the observations made so far, highlighting that the proposed regulations were designed to translate the competition provisions of the Petroleum Industry Act (PIA) into detailed and enforceable rules for the petroleum sector.
• Tolorunse noted that the framework would apply to transportation through pipelines, storage and terminals, wholesale petroleum and gas activities, retail fuel distribution, petrochemicals, and other related commercial activities.

He also highlighted that the regulations would address situations where a dominant operator controls essential infrastructure such as pipelines, terminals, storage facilities, supply channels, or market information.

According to him, with the final draft, the Authority would have a stronger framework to intervene in issues involving market power, infrastructure access, capacity allocation, and discriminatory practices.

However, he warned against creating jurisdictional conflicts or duplication between the NMDPRA and FCCPC.

Fuel pricing allegations add context

The meeting came 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, 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.

NMDPRA broadens petroleum sector reforms

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.

In recent years, the Authority has introduced regulations covering environmental protection, operational safety, decommissioning of petroleum facilities, and environmental remediation funding, all aimed at improving industry standards, regulatory oversight, and long-term sustainability.

More recently, the NMDPRA also said it was 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.