The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that marketers across the country will shut down filling stations if the Federal Government attempts to impose petrol price controls, insisting that such a move would undermine the deregulated downstream petroleum market.
The warning comes after the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, directed regulators to curb profiteering and protect consumers from exploitative pricing practices. While reaffirming that petrol pricing remains market-driven under the Petroleum Industry Act (PIA), the minister stressed that deregulation does not exempt operators from regulatory oversight.
Responding to the minister's position, IPMAN National Publicity Secretary, Chinedu Ukadike, said marketers would strongly resist any attempt to fix pump prices, arguing that prices in a deregulated market must be determined by prevailing market conditions rather than government directives.
"If they try to enforce price control, marketers will shut down filling stations nationwide. You cannot claim to operate a deregulated market and at the same time dictate the price at which products should be sold. Before accusing marketers of profiteering, government should first determine the actual cost at which products were purchased," Ukadike said.
He dismissed allegations that marketers were taking advantage of consumers, explaining that many operators are currently battling heavy losses following successive reductions in ex-depot prices, particularly by Dangote Refinery.
According to him, marketers who purchased petrol at higher prices have been forced to compete against newer, cheaper supplies entering the market, significantly eroding their margins.
"We are the ones bearing the losses. Many marketers bought products only for prices to be reduced before the fuel even reached their filling stations. To remain competitive, they are compelled to lower prices despite the financial hit. Most independent marketers also finance their businesses through bank loans, and those repayment obligations remain regardless of market fluctuations," he said.
Ukadike maintained that the solution to lower petrol prices lies in expanding competition across the downstream sector rather than introducing administrative price controls. He urged the Federal Government to prioritise increasing domestic refining capacity, support refinery rehabilitation, conclude ongoing refinery partnerships and encourage more market participants.
"The challenge is inadequate competition. Once more refineries begin producing and supply improves, prices will naturally adjust. Government should concentrate on removing supply constraints instead of interfering with pricing in a deregulated market," he added.
Also reacting, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the minister has the statutory authority to intervene where consumers are being exploited. However, he advised that any regulatory action should follow broad consultations with refiners, marketers and other stakeholders to avoid disrupting the market.
He called on the Minister of Petroleum Resources to urgently convene a stakeholders' meeting to review current pricing realities and agree on measures that protect consumers while preserving the principles of deregulation.
The debate comes as petrol prices across the country remain between ₦1,140 and ₦1,210 per litre, despite the recent decline in international crude oil prices. The development has intensified scrutiny from regulators and consumer protection authorities over whether the benefits of lower crude prices are being fully reflected in domestic fuel prices.