Fuel Marketers Warn FG Against Price Controls, Threaten Nationwide Petrol Sales Halt

Independent fuel marketers have warned the Federal Government against any attempt to impose petrol price controls, saying such a move would force filling stations across the country to suspend operations.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, issued the warning on Tuesday while reacting to recent comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on the need to protect consumers from exploitation in the deregulated downstream petroleum sector.

Lokpobiri had, on Monday, cautioned petroleum marketers against profiteering, stressing that although petrol pricing has been deregulated, government agencies still have a responsibility to prevent unfair market practices.

The minister spoke 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.

His comments followed mounting public criticism over the failure of refiners and fuel importers to significantly reduce petrol prices despite the sharp decline in international crude oil prices from about $120 per barrel during the US-Iran conflict to nearly $72 per barrel.

The Federal Competition and Consumer Protection Commission (FCCPC) had also expressed concerns over possible consumer exploitation, questioning why pump prices had remained largely unchanged despite falling crude oil prices.

Addressing stakeholders, Lokpobiri insisted that market forces should determine fuel prices but maintained that deregulation does not prevent regulators from protecting consumers.

“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,” Lokpobiri said.

Reacting to the minister’s position, IPMAN dismissed claims that marketers were profiteering, arguing that many operators have instead suffered significant financial losses following repeated downward adjustments in depot prices by the Dangote Refinery.

Ukadike maintained that marketers merely reflect their purchase costs at the pump and urged the Federal Government to focus on increasing competition rather than considering price controls.

He warned that any attempt to dictate retail prices would trigger a nationwide shutdown by independent marketers.

“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 facing marketers, Ukadike said many operators are struggling to recover losses caused by fluctuating prices and expensive bank loans.

He said, “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.”

According to him, the downstream market should be allowed to operate freely, with prices ultimately determined by supply and demand rather than administrative directives.

He argued that increasing the number of fuel suppliers and expanding local refining capacity would naturally reduce pump prices.

“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 stated.

Ukadike also urged the government to address the underlying causes of high fuel prices instead of focusing on retail outlets.

“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,” Ukadike said.

PETROAN Advocates Dialogue

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged that the Federal Government possesses the legal authority to intervene where consumers are being exploited but insisted that any such action should follow consultations with industry stakeholders.

He said, “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,” he said.

Gillis-Harry further cautioned that imposing decisions without industry consensus could create additional challenges.

“They have the right to intervene, but if they do that and the stakeholders have a different view, that will be difficult. And that’s why the minister should mandate a meeting to speak to all stakeholders as fast as possible.

“The minister has the power to intervene in matters like this, and every stakeholder, including the refineries, must comply,” he submitted.

Meanwhile, NMDPRA spokesman George Ene-Ita said he was unaware of any specific regulatory action being considered by the authority.

“I’ve not been briefed. I don’t know the action the management wants to take,” Ene-Ita replied.

Petrol currently sells between ₦1,140 and ₦1,210 per litre across different parts of the country, with prices varying according to location and distribution costs.