The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled a set of proposed regulations designed to eliminate fuel price fixing and other anti-competitive practices in the petroleum industry. This initiative is part of a broader effort to enhance market competition and improve transparency within the sector.

The draft regulations, titled "Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026," aim to prohibit collusion among fuel marketers that could lead to coordinated pricing, restricted supplies, or market division. NMDPRA Chief Executive, Mallam Rabiu Umar, emphasized that the framework is rooted in Section 216 of the Petroleum Industry Act (PIA) of 2021 and is intended to foster fair competition while ensuring equitable access to critical petroleum infrastructure.

During a stakeholder consultation forum held in Abuja, Umar highlighted that the proposed regulations would bar competing operators from coordinating various pricing elements, including pump prices, profit margins, discounts, and supply volumes. Additionally, service providers will be required to disclose their tariffs and operational conditions, effectively eliminating hidden charges and undisclosed agreements that could distort market dynamics.

The regulations also stipulate that owners of essential petroleum infrastructure, such as pipelines, storage terminals, and depots, must grant qualified third parties access under transparent and non-discriminatory terms. Dr. Joseph Tolorunse, NMDPRA Secretary and Legal Adviser, noted that the framework consists of 138 regulations across 23 parts, translating the PIA’s competition provisions into enforceable rules.

While the proposed regulations are poised to reshape the fuel pricing landscape, they are still subject to stakeholder consultation before finalization. The NMDPRA aims to ensure that the regulations effectively address the concerns of consumers and operators alike, promoting a healthier competitive environment.

In a related development, the Federal High Court in Abuja recently ruled in favor of three fuel marketers—Matrix Energy, AA Rano, and AYM Shafa—allowing them to continue receiving import licenses from NMDPRA. This decision comes amidst ongoing tensions between these marketers and Dangote Refinery, which has been advocating for restrictions on fuel imports. The court found that the regulator's refusal to issue or renew licenses was inconsistent with the PIA, reinforcing the authority's role in promoting competition and preventing market abuse.

As the NMDPRA moves forward with its proposed regulations, the implications for consumers could be significant, potentially curbing practices that inflate fuel prices and limit access to supplies. However, it is important to note that the announcement of these regulations does not immediately alter fuel prices at the pump, as they remain subject to further consultation and final approval.

The proposed changes come at a time when some filling stations have begun selling petrol below ₦1,400 per litre, providing some relief to motorists after a period of soaring fuel costs. The ongoing developments in Nigeria's petroleum sector reflect a critical moment for both consumers and industry stakeholders as they navigate the complexities of fuel pricing and supply.