The Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to shut down filling stations nationwide if the Federal Government attempts to impose fuel price controls in the deregulated downstream petroleum sector.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, issued the warning amid growing concerns by government agencies over high petrol prices despite falling global crude oil prices. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take action against marketers accused of exploiting consumers. The Federal Competition and Consumer Protection Commission (FCCPC) also warned marketers against charging excessive prices.
The government’s concerns come as Brent and West Texas Intermediate crude prices have fallen to about 72 and 69 dollars per barrel, respectively, down from over 100 dollars per barrel following easing tensions in the Iran-US-Israel conflict. However, petrol prices in Nigeria remain high despite recent reductions by the Dangote Refinery and some filling stations. In Abuja, petrol currently sells for between ₦1,210 and ₦1,300 per litre.
Ukadike argued that the decline in retail fuel prices has not matched the drop in crude oil prices and said marketers have lost between ₦10 billion and ₦15 billion in recent weeks due to repeated price reductions. He insisted that enforcing price controls in a deregulated market would violate the Petroleum Industry Act, warning that marketers would shut down their outlets nationwide if the government attempted to dictate pump prices.
