The National Petroleum Authority (NPA) has directed Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to halt discounted fuel pricing under revised Petroleum Pricing Guidelines set to take effect on March 16, 2026.
Under the new directive, all OMCs and LPGMCs are required to maintain uniform pricing across their retail outlets nationwide. The price displayed at the pump must correspond exactly with the price submitted to the regulator.
In a letter addressed to Petroleum Service Providers, the NPA stated that companies will no longer be permitted to apply selective discounts at specific outlets as part of competitive marketing strategies.
According to the Authority, the revised guidelines are aimed at strengthening the existing pricing framework, ensuring strict compliance with the approved pricing formula, and enhancing monitoring and enforcement within the downstream petroleum sector.
The NPA explained that the changes are designed to sustain the industry through improved transparency and adherence to established regulations.
It cautioned that it will not hesitate to sanction any OMC or LPGMC that fails to comply with the new directives.
Additionally, operators are prohibited from selling petroleum products at prices higher than those communicated to the regulator or publicly advertised.
Over the years, some market players have frequently reduced prices of major products such as petrol and diesel to attract customers.
Several other companies, including the second-largest operator, GOIL, have adopted similar competitive pricing strategies.
While discounted pricing has often translated into lower pump prices for consumers, the rationale behind the regulator’s latest move remains unclear to some industry observers.
However, other stakeholders argue that the directive could help level the playing field by standardising pricing practices across the sector.
To address concerns and provide clarification, the NPA has scheduled a meeting with industry players on March 11, 2026, ahead of the implementation date.
A review of the revised framework indicates that OMCs must strictly adhere to the approved pricing formula when determining ex-pump prices.
The guidelines reaffirm the bi-monthly pricing windows — from the 1st to the 15th of each month, and from the 16th to the end of the month — with prices for each window required to be submitted on the NPA platform before the commencement of the respective pricing period.
The Authority has also signalled plans to intensify monitoring activities, including verification of product quality across retail outlets.
In a move expected to further enhance transparency and regulatory oversight, the NPA will, from March 16, begin publishing all ex-pump prices submitted by OMCs.
