The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that its members may shut down filling stations across the country if the Federal Government attempts to impose fuel price controls in the deregulated downstream petroleum sector.
Speaking with journalists, IPMAN’s National Publicity Secretary, Chinedu Ukadike, argued that the petroleum market operates under the deregulated framework established by the Petroleum Industry Act (PIA), making government-imposed pricing inconsistent with the law.
The warning follows recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take action against marketers allegedly exploiting consumers through excessive petrol prices.
Similarly, the Federal Competition and Consumer Protection Commission (FCCPC) recently cautioned petroleum marketers against engaging in what it described as exploitative pricing practices.
The government’s intervention comes amid declining global crude oil prices. Brent crude and West Texas Intermediate (WTI) have fallen to about $72 and $69 per barrel respectively, following the easing of geopolitical tensions involving Iran, the United States and Israel.
Despite lower international oil prices and recent downward adjustments by Dangote Refinery and some retail outlets, petrol prices remain relatively high across Nigeria. In Abuja, pump prices currently range between ₦1,210 and ₦1,300 per litre at several filling stations.
Marketers Report Heavy Financial Losses
Ukadike said independent marketers have incurred substantial financial losses following successive reductions in petrol prices, forcing them to sell products purchased at higher costs below their acquisition prices.
According to him, many operators have lost between ₦10 billion and ₦15 billion over the past few weeks as they struggle to remain competitive in the market.
He explained that by the time fuel purchased at an earlier, higher price reaches retail outlets, market prices may have dropped further, leaving marketers with no option but to sell at a loss.
‘A Deregulated Market Should Not Have Price Controls’
The IPMAN spokesman maintained that any attempt by the government to dictate pump prices would undermine the principles of deregulation and violate the provisions of the Petroleum Industry Act.
He warned that marketers would have no choice but to suspend operations nationwide if authorities enforce price controls without considering the actual cost of fuel purchases.
Ukadike stressed that a deregulated market should allow operators to determine their selling prices based on prevailing market conditions, insisting that the government cannot simultaneously promote deregulation while imposing pricing restrictions.
He reiterated that IPMAN members would shut down their filling stations across the country should the government proceed with any form of fuel price control.
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