The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that it may shut down filling stations across the country if the Federal Government attempts to impose price controls on the downstream petroleum sector.
Speaking with journalists, IPMAN’s National Publicity Secretary, Chinedu Ukadike, argued that the petroleum market had already been deregulated under the Petroleum Industry Act (PIA), making government-imposed pricing inconsistent with the law.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take action against marketers accused of exploiting consumers through excessive fuel pricing.
Similarly, the Federal Competition and Consumer Protection Commission (FCCPC) cautioned petroleum marketers against what it described as unfair and exploitative petrol pricing.
The government’s concerns come as global crude oil prices have eased, with Brent crude and West Texas Intermediate trading at about $72 and $69 per barrel, respectively, following reduced geopolitical tensions involving Iran, the United States, and Israel.
Although the drop in crude prices has prompted price cuts by Dangote Refinery and some fuel retailers, petrol continues to sell at relatively high rates across many parts of Nigeria. In Abuja, pump prices currently range from ₦1,210 to ₦1,300 per litre.
Marketers Count Heavy Losses
Ukadike said marketers have incurred substantial financial losses due to repeated reductions in petrol prices. According to him, many operators have lost between ₦10 billion and ₦15 billion after purchasing products at higher costs but being forced to sell at lower prices to remain competitive.
He explained that marketers often receive fuel at one price only to discover that market prices have fallen before the products reach their stations, leaving them with no option but to sell at a loss.
‘A Deregulated Market Cannot Be Price-Controlled’
Ukadike maintained that any attempt by the government to fix pump prices would trigger a nationwide shutdown by petroleum marketers.
He insisted that authorities cannot claim the sector is deregulated while simultaneously dictating the prices at which marketers should sell fuel.
According to him, the provisions of the Petroleum Industry Act must be fully respected, warning that IPMAN members would close their filling stations nationwide if the government proceeds with any form of price control.