The National Petroleum Authority (NPA) has moved to end the practice of discounted fuel pricing by Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) under the revised Petroleum Pricing Guidelines, which take effect on March 16, 2026. The new directive requires all OMCs and LPGMCs to maintain uniform pricing across their retail outlets, with pump prices matching those submitted to the NPA. The regulator has cautioned that selective discounts at specific outlets will no longer be permitted. Details of the revised guidelines, compiled by the NPA, were communicated in a letter to Petroleum Service Providers, sighted 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
An assessment of the revised framework underscores that Oil Marketing Companies (OMCs) are required to strictly comply with the approved pricing formula when setting ex-pump prices. The guidelines establish two bi-monthly pricing windows: the 1st–15th and the 16th–end of each month. For each window, OMCs must submit their prices on the NPA platform prior to the start of the respective period.
The NPA has further announced plans to strengthen its monitoring activities, including product quality verification across retail outlets. Notably, beginning March 16, all ex-pump prices submitted by OMCs will be published—a measure designed to promote transparency and reinforce regulatory oversight within the sector.
Source: Joy Business
