Petroleum marketers across Nigeria have warned that they may shut down filling stations nationwide if the Federal Government attempts to impose price controls on petrol in the country’s deregulated downstream oil sector. The warning comes amid growing pressure from the government for marketers to reduce pump prices following the recent decline in global crude oil prices.
The Federal Government, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently urged regulators to ensure that Nigerians are not exploited by excessive fuel pricing. The government also stressed that while the petroleum market is deregulated, agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have a responsibility to prevent profiteering and protect consumers.
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) strongly rejected any move toward price regulation. The association argued that petrol prices should continue to be determined by market forces, as provided under the Petroleum Industry Act (PIA). According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, marketers are already facing significant financial losses due to frequent price reductions by suppliers, particularly the Dangote Refinery, while many operators are servicing bank loans and dealing with declining sales.
The marketers insisted that fixing pump prices without considering the actual cost of procurement would make their businesses unsustainable. They maintained that increased competition, improved local refining capacity, and easier access to imported petroleum products would naturally bring prices down without government interference. IPMAN warned that any attempt to enforce price controls could force independent marketers to suspend operations across the country.
The disagreement highlights the continuing debate over fuel pricing in Nigeria’s deregulated market. While consumers hope for lower petrol prices as global oil prices decline, marketers argue that policy consistency and genuine market competition are the only sustainable solutions. The outcome of ongoing discussions between the government, regulators, and industry stakeholders is expected to have a significant impact on fuel availability and pricing in the coming months.
