Independent petroleum marketers have threatened to shut down filling stations across Nigeria if the Federal Government attempts to impose fuel price controls in the country’s deregulated downstream petroleum sector.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who urged marketers to reflect declining global crude oil prices in retail petrol prices and cautioned against profiteering.
Reacting to the minister’s position, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, insisted that any attempt by the government to dictate pump prices would undermine the principles of deregulation and force marketers to suspend operations nationwide.
Ukadike argued that marketers are already struggling with significant financial losses caused by frequent reductions in depot prices, particularly by the Dangote Refinery. According to him, many marketers purchase petroleum products with bank loans at higher prices, only for depot prices to drop before they can sell off existing stock.
He maintained that the pricing framework established under the Petroleum Industry Act supports a market-driven system and warned that government interference could discourage investment and weaken confidence in the downstream sector.
Rather than imposing price controls, Ukadike called on the Federal Government to encourage competition by supporting local refining, reviving state-owned refineries and creating an enabling environment for more operators to participate in the market.
However, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, adopted a more conciliatory stance.
He acknowledged the government’s responsibility to protect consumers but urged authorities to engage stakeholders before taking any action. Gillis-Harry called for an emergency meeting involving regulators, refiners, marketers and government officials to resolve the dispute through dialogue.
The disagreement comes amid growing public pressure for lower fuel prices following a decline in global crude oil prices after easing geopolitical tensions in the Middle East. Despite the drop in international oil prices, petrol continues to sell for between ₦1,140 and ₦1,210 per litre across various parts of the country.
The Federal Competition and Consumer Protection Commission has also questioned why falling crude oil prices have not resulted in more significant reductions at the pump.
The Commission’s Executive Vice Chairman, Tunji Bello, said the agency would continue monitoring the market for signs of price manipulation, anti-competitive practices or consumer exploitation, stressing that while the FCCPC does not set fuel prices, it has a statutory duty to protect consumers.