Fuel Marketers Reject Petrol Price Controls, Threaten Nationwide Shutdown

Fuel Marketers Reject Petrol Price Controls, Threaten Nationwide Shutdown 

Fuel marketers have warned that filling stations across Nigeria could shut down if the Federal Government attempts to enforce price controls on Premium Motor Spirit (PMS), popularly known as petrol, saying such a move would undermine the country’s deregulated downstream petroleum sector.

The warning follows recent comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who said the government would not tolerate profiteering or practices that exploit consumers, even though petrol pricing has been deregulated under the Petroleum Industry Act (PIA).

Speaking at the 2026 General Counsel and Legal Advisers Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, the minister stressed that while market forces should determine fuel prices, regulators still have a legal responsibility to protect Nigerians from unfair pricing and anti-consumer practices.

Lokpobiri explained that deregulation does not mean the government has relinquished its oversight role, noting that the PIA empowers institutions such as the NMDPRA to ensure product availability, market stability and consumer protection.

His remarks came amid growing public concern over the slow decline in petrol prices despite a significant drop in global crude oil prices. International crude prices recently fell from about $120 per barrel during the Middle East conflict to around $72 per barrel, prompting calls for corresponding reductions in domestic fuel prices.

Earlier, the Federal Competition and Consumer Protection Commission (FCCPC) also raised concerns over what it described as possible consumer exploitation in the downstream petroleum sector, questioning why pump prices had not fallen substantially despite lower crude oil prices.

Reacting to the government’s position, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, rejected suggestions that marketers were profiteering, insisting that many operators are instead battling mounting financial losses.

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According to him, frequent price reductions by the Dangote Refinery have forced marketers who purchased fuel at higher prices to sell at slimmer margins—or even at a loss—in order to remain competitive.

“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,” Ukadike said.

He explained that many independent marketers rely on bank loans to finance fuel purchases, making sudden price adjustments particularly challenging because loan obligations remain unchanged regardless of market fluctuations.

Ukadike argued that rather than introducing price controls, the Federal Government should address the underlying causes of high fuel prices by encouraging greater competition within the downstream sector.

He urged authorities to accelerate the rehabilitation of government-owned refineries, support the operations of private refineries and facilitate increased fuel imports where necessary to create a more competitive market capable of naturally lowering pump prices.

“The primary cause of this is that there is no competition. If there should be competition, the refineries will be working. The PIA must be followed to the letter. If they try to enforce price control, we will shut down,” he added.

Offering a more conciliatory approach, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the minister has the legal authority to intervene in consumer protection matters but advised that any action should follow broad consultations with industry stakeholders.

He called on the Minister of Petroleum Resources to convene an urgent meeting involving marketers, refiners, regulators and other stakeholders to examine the issues surrounding fuel pricing and agree on measures that would protect consumers without undermining investor confidence in the deregulated market.

Meanwhile, the spokesman for the NMDPRA, George Ene-Ita, said he had not been briefed on any proposed regulatory action concerning petrol pricing and therefore could not comment on the authority’s next steps.

Petrol currently sells for between ₦1,140 and ₦1,210 per litre, depending on location, reflecting regional differences in transportation costs, supply chains and competition among marketers.

The latest disagreement highlights the delicate balance between protecting consumers from unfair pricing and preserving the principles of deregulation introduced under the Petroleum Industry Act. While the government insists it will act against profiteering, marketers argue that sustained competition—not price controls—is the most effective way to deliver lower fuel prices to Nigerians.

Fuel Marketers Reject Petrol Price Controls, Threaten Nationwide Shutdown