NMDPRA proposes ban on fuel price fixing, opens depots and pipelines to third parties

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed new rules to ban fuel price fixing, hidden charges and other anti-competitive practices in the petroleum industry.

The draft regulations would also force owners of pipelines, depots, jetties and storage terminals to grant qualified third parties fair access.

The framework was presented at a stakeholders’ consultation forum in Abuja.

NMDPRA Chief Executive Mallam Rabiu Umar said the proposals were developed under Section 216 of the Petroleum Industry Act (PIA), 2021, and that stakeholders’ submissions would be considered before the regulations are finalised.

NMDPRA Secretary and Legal Adviser Dr Joseph Tolorunse said the framework contains 138 regulations across 23 parts, translating the PIA’s competition provisions into detailed, enforceable rules.

Under the proposals, competing operators would be barred from coordinating pump and ex-depot prices, profit margins, discounts, freight charges, supply volumes and tender submissions.

They would also be stopped from restricting supplies or dividing customers and territories.

Service providers would have to disclose tariffs, fees and general operating conditions. Hidden surcharges, undisclosed preferential arrangements and informal agreements that alter published access terms would be prohibited.

Owners or controllers of essential petroleum infrastructure would be required to give qualified third parties access on transparent and non-discriminatory terms.

The facilities covered include pipelines, storage terminals, jetties, bulk-loading facilities and depots.

Tolorunse said restrictions would only be allowed on legitimate technical, safety or creditworthiness grounds. He clarified that
becoming a dominant operator would not itself be an offence.

The target is the abuse of that position to undermine fair competition.

The proposals come amid a separate court ruling backing continued fuel import licensing for three marketers.

On September 28, the Federal High Court in Abuja ordered NMDPRA to continue granting petroleum product import licences to Matrix Energy, AA Rano and AYM Shafa, subject to their meeting applicable requirements.

Justice Inyang Ekwo held that the regulator’s refusal to issue or renew the companies’ licences was inconsistent with the PIA, according to the judgment.

The court also affirmed the authority’s responsibility to promote competition and prevent abuse of dominant positions.

The judgment arose from the marketers’ case against NMDPRA. It does not amount to a ruling dismissing Dangote Refinery’s own lawsuit.

Dangote has separately challenged import licences, arguing that imports should be permitted only where domestic supply falls short, Reuters reports.

For consumers, the proposed rules are meant to curb practices that distort fuel pricing and access to supplies.

They remain subject to consultation and finalisation, so their announcement does not set a new pump price or guarantee immediate reductions at filling stations.

Oil marketers have increasingly been lifting petroleum products from the Dangote Petroleum Refinery as the cost of importing petrol and diesel stays above the refinery’s selling prices.

The widening price advantage comes as some filling stations have begun selling petrol below ₦1,400 per litre, offering motorists some relief after weeks of elevated fuel prices.

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