The Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to shut down filling stations nationwide if the Federal Government introduces fuel price controls in the deregulated downstream petroleum sector.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, made the warning during an interview with journalists, arguing that regulating pump prices would violate the provisions of the Petroleum Industry Act (PIA), which established a market-driven pricing system.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate and sanction marketers accused of exploiting consumers through excessive petrol prices.
The Federal Competition and Consumer Protection Commission (FCCPC) had also cautioned fuel marketers against arbitrary pricing, expressing concerns that consumers were not benefiting sufficiently from recent declines in international crude oil prices.
Global oil prices have eased in recent weeks, with Brent crude trading at about $72 per barrel and West Texas Intermediate (WTI) at around $69 per barrel, compared to levels above $100 per barrel during heightened geopolitical tensions involving Iran, the United States, and Israel.
Despite the decline in crude oil prices and recent pump price reductions announced by the Dangote Refinery, petrol prices remain relatively high in parts of the country. In Abuja, the product currently sells for between ₦1,210 and ₦1,300 per litre at many filling stations.
Government officials maintain that the reductions in pump prices have not adequately reflected the sharp fall in global crude oil prices, prompting increased scrutiny of fuel pricing by marketers.
Responding to the government’s position, Ukadike said petroleum marketers had suffered significant financial losses due to repeated reductions in fuel prices, estimating the losses at between ₦10 billion and ₦15 billion in recent weeks.
According to him, marketers often purchase products at higher prices only for market prices to decline before the fuel reaches retail outlets, forcing them to sell at a loss to remain competitive.
Ukadike warned that any attempt by the government to impose fuel price controls would be met with a nationwide shutdown of filling stations.
“You cannot regulate a market that has been deregulated. You cannot dictate the selling price of my product without considering the cost at which I purchased it. The Petroleum Industry Act must be respected and implemented fully. If they enforce price control, we will shut down,” he said.
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