MDPPACPB Regulations

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which apply equally to internal transfers and transactions with independent 
licensees. 
 
3. Data and Operational Safeguards 
The Authority may require the establishment of internal firewalls, compliance 
protocols, or ring-fencing measures to prevent the misuse of commercially 
sensitive information obtained through one part of the operations of a licensee 
in ways that could distort competition in another part. 
 
4. Pricing, Terms, and Conditions 
(a) Prices, terms, and conditions for intra-group transactions—including but not 
limited to the sale, transfer, or supply of petroleum products, infrastructure 
services, or other regulated inputs—shall reflect prevailing market conditions 
and be transparent, cost-reflective, and commercially reasonable. 
(b) Internal charges and transfer prices shall be no more favourable than those 
offered to independent third parties for comparable products, services, or 
access under similar circumstances. 
5. Scope of Application 
This obligation applies to all forms of intra-group transactions, including but not 
limited to: 
 
(a) 
Transfer pricing between divisions or business units (e.g., midstream 
pipeline to downstream retail); 
 
(b) 
Shared services and internal supply arrangements; 
 
(c) 
Infrastructure access and capacity allocation within the 
corporate group. 
6. Documentation and Auditability 
All such transactions must be fully documented, supported by verifiable 
records, and maintained in a form that is readily auditable by the Authority. 
Documentation shall be sufficient to demonstrate compliance with market-
based, transparent, and cost-reflective standards. 
 
7. Statutory Basis 
This Regulation shall be applied in accordance with Sections 116, 161, 162, 163, 
179, 180, 185, and 213 of the Act and any other applicable provisions of these 
Regulations. 
 
 
44. Prohibition of Anti-Competitive Cross-Subsidisation, Transfer Pricing 
Integrity, and Separation Obligations for Integrated Licensees 
 
(1) Application and Determination of Dominance 
(a) This Regulation shall apply to any licensee that the Authority, after due 
process of investigation and hearing, formally determines to be a monopoly 
service provider or an excessively dominant supplier in a specific licensed 
activity, as stipulated under Section 205(2) of the Act.