Fuel marketers have warned that filling stations across the country will stop selling petrol if the Federal Government attempts to enforce price controls in Nigeria’s deregulated downstream petroleum sector.
The warning comes amid growing public concern over the relatively high retail price of Premium Motor Spirit (PMS), despite a sharp decline in global crude oil prices. Since the implementation of the Petroleum Industry Act (PIA) and the removal of fuel subsidy, petrol prices have been largely determined by market forces, with government maintaining that its role is to regulate the market and protect consumers rather than fix prices.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, issued the warning while reacting to comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who said the government would not tolerate profiteering or practices that exploit fuel consumers.
Speaking at the opening of the 2026 General Counsel and Legal Advisers Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, Lokpobiri said that although the era of government-fixed petrol prices had ended, deregulation does not relieve regulators of their responsibility to protect consumers.
His remarks followed renewed public concerns over the failure of refiners and importers to significantly reduce petrol prices despite global crude oil prices dropping from about 120 dollars per barrel during the United States-Iran conflict to around 72 dollars per barrel.
The Federal Competition and Consumer Protection Commission (FCCPC) had also expressed concern over what it described as possible consumer exploitation in the downstream petroleum sector following the failure of fuel prices to decline substantially in line with falling crude oil prices.
Addressing participants at the forum, Lokpobiri said the NMDPRA must ensure Nigerians are not exploited by marketers.
“As part of the requirements of deregulation, prices have to be determined by market forces. The NMDPRA has a unique responsibility, compounded by the PIA, to ensure not only that products are available but also that unnecessary profiteering is stopped.
“Yes, the market is definitely deregulated, but that doesn’t limit deregulation… What is important is the reality of the situation in the industry. Primarily, market forces have to determine prices. But we also have a responsibility as a government to ensure that there is no profiteering. The PIA specifically vested (that power in) government institutions, including the NMDPRA.”
Reacting, Ukadike dismissed allegations that marketers were profiteering, insisting that many filling station operators have suffered financial losses following repeated reductions in gantry prices by Dangote Petroleum Refinery.
He said the Federal Government should investigate the root causes of the prevailing petrol prices and encourage greater competition by ensuring that local refineries operate efficiently, stressing that marketers can only sell products at prices reflecting their purchase costs.
“Marketers will shut down if they try somehow to enforce price control. We are going to shut down our stations nationwide. You can’t be regulating a deregulated market. You can’t tell me how much to sell my product without trying to know how much I bought it.”
Describing the challenges confronting independent marketers, Ukadike said many operators purchased petrol at higher prices only for prices to be reduced before the products reached their filling stations.
“We, the independent marketers, are losing money. We bought petrol at a particular rate a few days ago; on our way to our filling stations, there was a reduction. We have been struggling with the price. We have been struggling against financial losses. We are also struggling against stagnation due to low patronage of our products. Because those marketers who are purchasing now are purchasing at a lower price, and they are selling cheaper.
“If you don’t bring down your price, you cannot see buyers. This is the beauty of deregulation. If you cannot compete, you will not survive in the market. And because most of us are trading on bank loans, the bank does not know when the price goes up or goes down. Their interest rate is fixed; their return on investment is fixed. So, you must pay them. This is the situation we find ourselves in.”
Ukadike maintained that petrol prices should continue to be determined by demand and supply rather than administrative controls.
“By the time more products come in, you will see that the prices will go down. What we, independent marketers, are asking for is not about regulation or trying to bring price control or trying to force marketers to sell below or trying to force Dangote to sell below its production cost. What we are asking is to open up the various channels, boost importation, and let local refineries start refining. This will push the competition to the peak. With this, prices will drastically go down.”
He argued that the government should focus on addressing the underlying causes of high fuel prices instead of attempting to regulate retail prices.
“The primary cause of this is that there is no competition. If there should be competition, the refineries will be working. That is where the minister should put his energy to ensure that our local refineries or whatever partnership we have with the Chinese will work. It is not about going to filling stations to check who is selling at higher prices. Do you know how much I bought the fuel for? Can you have a regulated market in a deregulated economy? You can’t be blowing hot and cold at the same time. The PIA must be followed to the letter. If they try to enforce price control, we will shut down.”
Also commenting, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the minister has the authority to intervene in protecting consumers but stressed that any decision should be taken in consultation with stakeholders across the industry.
“The minister of petroleum has the power to intervene in ensuring that Nigerians are treated fairly. The NMDPRA has the power, and so does the FCCPC. However, these decisions to discipline or not to discipline should follow stakeholder practice.
“We have the petroleum stakeholder conference that is being headed by the minister. And I think that this is the time for the minister to convene a meeting of all the stakeholders to unravel what the scenario is and what the situation is and make a decision that is beneficial for Nigerians. That’s what I think we should do.”
