The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified its regulatory grip on petroleum marketers, threatening to revoke the licences of fuel stations found guilty of under-dispensing products to consumers. This move is part of a broader effort to ensure accurate dispensing of petroleum products and protect consumer confidence. The Authority has ordered retail outlets nationwide to calibrate and verify their dispensing pumps and totalisers immediately.
The NMDPRA has issued an industry circular directing operators of retail outlets to immediately calibrate and verify their dispensing equipment and totalisers. This measure aims to prevent under-dispensing and ensure that consumers receive the full quantity of petroleum products for which they pay. The Authority has intensified nationwide inspections and enforcement activities to identify outlets involved in under-dispensing or using improperly calibrated equipment.
The regulator has warned that operators found violating dispensing standards will be required to take immediate corrective action, while persistent or serious breaches could result in the ultimate sanction of licence revocation. The NMDPRA described accurate dispensing as an essential part of protecting consumer confidence and maintaining integrity in petroleum product transactions.
The Authority has directed major petroleum industry associations, including the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), to ensure that their members are fully informed of the new enforcement directive and comply with the requirements.
The NMDPRA is also proposing a 138-regulation competition code aimed at tackling anti-competitive practices across the midstream and downstream petroleum sectors. The proposed framework contains regulations divided into 23 parts and is intended to establish detailed, sector-specific competition rules for the petroleum industry.
The proposed competition code seeks to translate the competition provisions contained in Section 216 of the Petroleum Industry Act (PIA) 2021 into enforceable rules governing the behaviour of operators across the petroleum value chain. The Authority has unveiled the draft regulations at a Stakeholders’ Consultation Forum in Abuja and is seeking submissions from industry operators.
The draft regulations would prohibit competing operators from coordinating on critical commercial decisions, including pump prices, margins, freight charges, supply volumes, and tender submissions. The Authority is also proposing scrutiny of operators controlling critical infrastructure such as pipelines, terminals, jetties, and depots, to prevent unjustifiable denial of access to qualified third parties.
Key points
- The NMDPRA has threatened to revoke the licences of fuel stations found guilty of under-dispensing products to consumers.
- The regulator has proposed a 138-regulation competition code to tackle anti-competitive practices across the midstream and downstream petroleum sectors.
- The Authority has intensified nationwide inspections and enforcement activities to identify outlets involved in under-dispensing or using improperly calibrated equipment.
