The Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to shut down filling stations across the country if the Federal Government attempts to impose fuel price controls on marketers.
The warning was issued by IPMAN spokesperson, Chinedu Ukadike, who argued that the downstream petroleum sector has already been deregulated under the Petroleum Industry Act (PIA), making any form of government price control unacceptable.
The development follows recent concerns raised by government agencies over the high cost of petrol despite a decline in global crude oil prices.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take action against marketers allegedly exploiting consumers through excessive fuel pricing.
Similarly, the Federal Competition and Consumer Protection Commission (FCCPC) recently warned fuel marketers against charging what it described as unfair or exploitative prices.
The government’s position comes amid a significant drop in international oil prices. Global crude oil prices have fallen in recent weeks following the easing of tensions involving Iran, Israel and the United States.
Brent crude is currently trading at around $72 per barrel, while West Texas Intermediate is selling for about $69 per barrel, far below the levels recorded during the height of the conflict.
Despite the decline in crude oil prices and recent reductions announced by the Dangote Refinery, petrol prices across Nigeria remain relatively high. In Abuja and several other cities, motorists still pay between N1,210 and N1,300 per litre at many filling stations.
Government officials believe the reduction in pump prices has not matched the sharp decline in crude oil costs, prompting calls for closer monitoring of fuel pricing practices.
However, IPMAN insists that marketers are not responsible for the slow pace of price reductions.
According to Ukadike, many marketers purchased petrol at higher prices before recent reductions took effect and are now being forced to sell at a loss to remain competitive in the market.
He revealed that marketers have collectively lost between N10 billion and N15 billion in recent weeks as fuel prices continued to fall after they had already stocked up on products.
Ukadike explained that petroleum marketers operate in a highly competitive environment where consumers naturally buy from stations offering lower prices. As a result, marketers who purchased fuel at higher rates often have no choice but to reduce prices and absorb the losses.
He warned that any attempt by the government to enforce price controls would undermine the principles of deregulation and could trigger a nationwide shutdown of filling stations.
According to him, a deregulated market should allow businesses to determine prices based on supply costs, transportation expenses, operational challenges and prevailing market conditions.
The IPMAN spokesperson stressed that marketers support policies that protect consumers but insisted that the government must also consider the financial realities facing fuel retailers.
He maintained that forcing marketers to sell below their cost price could lead to business failures, job losses and disruptions in fuel supply across the country.
The latest dispute highlights growing tensions between regulators seeking lower fuel prices for consumers and marketers who say they are struggling to survive in Nigeria’s evolving deregulated petroleum market.
If unresolved, the disagreement could have significant implications for fuel availability and pricing nationwide.
