Independent fuel marketers have warned that they will shut down filling stations across the country if the Federal Government attempts to impose price controls on petrol in the deregulated downstream sector. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, issued the warning on Tuesday, insisting that government cannot dictate pump prices in a market governed by deregulation.
His comments followed remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who on Monday cautioned that the government would not tolerate profiteering or practices that exploit 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 stressed that while petrol prices were no longer fixed by government, regulators still had a responsibility to protect consumers.
His remarks came amid growing public concern over the reluctance of refiners and fuel importers to reduce petrol prices despite the decline in global crude oil prices from about $120 per barrel during the US-Iran conflict to around $72 per barrel.
The concerns were reinforced on Sunday when the Federal Competition and Consumer Protection Commission (FCCPC) expressed worries over what it described as possible consumer exploitation in the downstream petroleum sector, noting that pump prices had not fallen significantly despite the sharp drop in crude oil prices.
Addressing stakeholders at the forum, Lokpobiri urged the NMDPRA to ensure Nigerians were not subjected to excessive pricing.
"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," the minister said.
Responding, Ukadike dismissed allegations that marketers were profiteering, arguing that many independent operators were instead suffering financial losses due to recent price reductions by the Dangote refinery.
He maintained that marketers simply sell products at prices determined by their acquisition costs and market conditions.
"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," he warned.
Ukadike explained that frequent reductions in ex-depot prices had left many marketers with unsold stock purchased at higher prices, forcing them to sell at a loss to remain competitive.
"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," he said.
The IPMAN spokesperson argued that increased competition, rather than government intervention in pricing, remained the most effective solution to reducing petrol 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 further urged the Federal Government to address the underlying causes of high fuel prices by improving domestic refining capacity and encouraging competition instead of considering price controls.
"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," he added.
PETROAN DECLARES
The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, has backed the Minister of State for Petroleum Resources (Oil)'s authority to step in against unfair pricing in the downstream petroleum sector, stressing that any such intervention should be carried out in collaboration with industry stakeholders.
Speaking on the issue, Gillis-Harry said the minister possesses the statutory powers to ensure consumers are protected from exploitation, noting that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) also have oversight responsibilities.
“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,” he said.
He urged the minister to convene a meeting of key players in the petroleum industry through the existing Petroleum Stakeholders Conference to examine the issues surrounding fuel pricing and agree on measures that would serve the interests of Nigerians.
“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.
