The threat follows comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who cautioned that the government would not tolerate profiteering or exploitative practices in the downstream petroleum sector
KaNo —
Fuel marketers across Nigeria have threatened to shut down operations nationwide if the Federal Government attempts to impose price controls on petrol, escalating tensions in the downstream sector amid ongoing debates over deregulation and consumer protection.
The warning was issued on Tuesday by the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike.
He said independent marketers would be forced to halt fuel sales if authorities dictate pump prices in what is officially a deregulated market.
“Marketers will shut down if they try somehow to enforce price control. We are going to shut down our stations nationwide,” Ukadike said
“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 added
The threat follows comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who cautioned that the government would not tolerate profiteering or exploitative practices in the downstream petroleum sector.
According to Lokpobiri, while petrol pricing is now determined by market forces following subsidy removal, government agencies still have a responsibility to ensure fairness and prevent excessive profiteering.
“As part of the requirements of deregulation, prices have to be determined by market forces,” he said.
“But we also have a responsibility as a government to ensure that there is no profiteering. The Petroleum Industry Act vested that power in government institutions, including the NMDPRA.”he added
The minister’s remarks come against the backdrop of growing public dissatisfaction over persistently high fuel prices, despite a sharp drop in global crude oil prices.
Crude had recently fallen from highs of about $120 per barrel during the US-Iran tensions to around $72, yet retail petrol prices have not seen a corresponding decline.
This disparity has triggered concern from the Federal Competition and Consumer Protection Commission, which on Sunday warned of possible consumer exploitation in the downstream sector.
The commission questioned why savings from lower crude oil prices were not being passed on to consumers.
Ukadike argued that independent marketers are, in fact, incurring losses due to sudden price fluctuations particularly reductions initiated by major suppliers such as the Dangote refinery.
“We, the independent marketers, are losing money,” he said.
“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 and against financial losses.”he added
He added that competition in a deregulated environment naturally forces marketers to lower prices, sometimes below their cost, in order to attract customers.
“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,” he noted.
Ukadike further highlighted the financial strain caused by reliance on bank loans, noting that lenders do not adjust repayment terms based on market volatility.
“Most of us are trading on bank loans. The bank does not know when the price goes up or down. Their interest rate is fixed. So, you must pay them regardless. This is the situation we find ourselves in,” he said.
According to him, the key to lowering fuel prices lies in boosting supply through increased importation and ensuring that local refineries operate efficiently.
“What we are asking is to open up the various channels, boost importation, and let local refineries start refining. This will push competition to the peak, and prices will drastically go down,” he said.
Ukadike also called on the government to address structural issues in the sector rather than resorting to price control measures, warning that attempting to regulate prices in a deregulated system would send conflicting signals.
“You can’t be blowing hot and cold at the same time. The Petroleum Industry Act must be followed to the letter. If they try to enforce price control, we will shut down,” he reiterated.
Meanwhile, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, adopted a more conciliatory tone, acknowledging the government’s right to intervene while advocating dialogue with stakeholders.
“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,” he said.
“However, these decisions should follow stakeholder practice.”
“We have the petroleum stakeholder conference headed by the minister. This is the time to convene a meeting of all stakeholders to unravel what is happening and make decisions that are beneficial for Nigerians,” he added.
The standoff highlights the delicate balance the government must strike between protecting consumers and maintaining a fully deregulated petroleum market.
While authorities are under pressure to address rising living costs, industry players insist that price controls could undermine the very reforms designed to stabilise the sector.
As tensions mount, the prospect of a nationwide shutdown by marketers raises concerns about potential fuel shortages and economic disruption, particularly in a country heavily reliant on petrol for transportation and power generation.
