The National Petroleum Authority (NPA) has moved to halt discounted fuel pricing by Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) under the revised Petroleum Pricing Guidelines, set to take effect from March 16, 2026.
Under the new directive, all OMCs and LPGMCs must ensure uniform pricing across their retail outlets. The price quoted at the pump must match the price submitted to the NPA.
The regulator has warned that companies will no longer be permitted to apply selective discounts at specific retail outlets across the country.
The revised guidelines, compiled by the NPA, were contained in a letter to Petroleum Service Providers, seen by JOYBUSINESS.
The Authority indicated that the changes are intended to strengthen the existing framework, ensure compliance with the pricing formula regulations, and enhance monitoring and enforcement within the industry.
According to the NPA, the revision is aimed at sustaining the petroleum downstream sector through improved transparency and adherence to established rules.
The Authority has also cautioned that it will not hesitate to sanction any OMC or LPGMC that fails to comply with the new directives. Additionally, no operator is permitted to sell products at prices above those communicated to the regulator or publicly advertised.
Impact on the Industry
Some industry players have told JOYBUSINESS that one of the immediate casualties of the directive could be a market leader known for using discounted pricing to drive sales and offer relatively lower pump prices to consumers.
Over the years, this player has frequently reduced prices of major products such as petrol and diesel to attract customers. Several other companies, including the second-largest player, GOIL, have adopted similar strategies.
For now, the rationale behind the regulator’s decision remains unclear to some industry watchers, particularly as discounted pricing has often translated into lower prices for consumers.
However, sources close to Star Oil have indicated to JOYBUSINESS that the company is not opposed to the policy, expressing confidence that it will continue to thrive and remain a preferred choice for customers.
Other industry stakeholders believe the directive could help level the playing field among operators by standardising pricing practices.
The NPA has scheduled a meeting with industry players on March 11, 2026, to address concerns and clarify issues ahead of the guidelines’ implementation.
Details of the New Guidelines
A review of the revised framework shows that OMCs must strictly adhere to the approved pricing formula when determining ex-pump prices.
The guidelines clearly stipulate the bi-monthly pricing windows: from the 1st to the 15th of each month, and from the 16th to the end of the month. Prices for each window must be submitted on the NPA platform before the start of the respective pricing period.
The NPA has also indicated that it will intensify its monitoring activities, including verification of product quality across retail outlets.
Another key innovation to be introduced from March 16 is the publication of all ex-pump prices submitted by OMCs, a move expected to enhance transparency and regulatory oversight in the sector.
Source: Myjoyonline
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