Major petroleum marketers in Nigeria have warned they could shut down filling stations nationwide if the Federal Government moves ahead with plans to enforce stricter controls on petrol pump prices in the country’s deregulated downstream sector. The warning comes amid growing tensions between regulators and marketers over fuel pricing following the recent decline in global crude oil prices.
The Federal Government had directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify oversight of petrol pricing, arguing that motorists should benefit from falling international oil prices after the easing of Middle East tensions. Officials insist deregulation should not become an avenue for excessive profiteering by operators.
However, marketers rejected what they described as an attempt to introduce price controls through the back door. The Independent Petroleum Marketers Association of Nigeria (IPMAN) argued that operators cannot be forced to sell below their acquisition costs in a deregulated market, warning that any attempt to dictate pump prices would violate the principles of the Petroleum Industry Act (PIA).
IPMAN spokesperson Chinedu Ukadike said many independent marketers are already struggling with losses due to repeated price adjustments by suppliers, particularly the Dangote Refinery. Rather than imposing price limits, he urged the government to promote competition by increasing local refining capacity and encouraging more product imports, which he said would naturally drive prices lower.
The dispute comes as consumers continue demanding cheaper petrol after crude oil prices dropped sharply in recent weeks. While government officials expect pump prices to reflect the decline, marketers maintain that retail prices are influenced by several factors beyond crude prices, including logistics, exchange rates and existing stock costs.
