MDPPACPB Regulations

Page 31 of 127
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27. Prohibition of Market Manipulation through False, Misleading, or Withheld 
Information 
 
1. 
Duty of Transparency 
All licensees especially those with significant market power or who operate 
critical infrastructure must provide timely, accurate, complete, and non-
misleading information to the Authority and, where applicable, to the market 
regarding operational conditions and key commercial variables. 
 
2. 
Scope of Required Disclosures 
Licensees shall disclose, in accordance with regulatory directives or guidelines, 
the following information: 
 
(a) 
Available capacity and throughput levels of storage, pipelines, 
loading bays, or other facilities; 
 
(b) 
Inventory levels of petroleum products or natural gas at terminals, 
depots, or storage sites; 
 
(c) 
Maintenance schedules, unplanned outages, and force majeure 
declarations that may affect facility availability or market supply; 
 
(d) 
Import schedules, anticipated shortfalls, or supply constraints by 
importers, wholesalers, or major traders. 
 
3. 
Prohibited Conduct 
It is a violation of this Regulation for any licensee to: 
 
(a) 
Withhold or delay disclosure of critical operational or commercial 
information that may significantly impact market decisions or pricing; 
 
(b) 
Falsely declare full capacity at a facility (e.g., pipeline or storage 
terminal) to deter new entrants or deny third-party access, when such 
capacity is in fact available; 
 
(c) 
Disseminate false or misleading information—whether directly, 
through intermediaries, or through public channels—about market availability, 
supply disruptions, or competitor conditions; 
 
(d) 
Fail to notify the Authority and affected customers of anticipated 
supply shortages or disruptions, and exploit the resulting artificial scarcity to 
manipulate prices or conditions in the market. 
 
4. 
Prohibited Market Manipulation 
Prohibited market-distorting conduct includes, but is not limited to: 
 
(a) 
A pipeline operator falsely asserting a lack of capacity to avoid 
granting third-party access, while reserving capacity for its affiliate; 
 
(b) 
A terminal operator failing to disclose a planned maintenance 
outage that affects loading availability, while secretly advancing its own 
shipment schedules; 
 
(c) 
An importer failing to notify the Authority of missed cargo deliveries 
and then capitalizing on the shortage to drive up wholesale prices or 
manipulate margins. 
 
5. 
Verification Obligations 
Licensees must: 
 
(a) 
Submit regular capacity and inventory reports to the Authority as 
prescribed; 
 
(b) 
Maintain accurate operational logs and audit trails of capacity 
utilization and access requests;