FUEL marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have warned that filling stations across the country will shut down if the Federal Government attempts to enforce petrol price control in the downstream petroleum sector.
News Point Nigeria reports that the warning followed recent remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who declared that while the era of government-fixed petrol prices had ended, the Federal Government would not tolerate profiteering or practices that exploit consumers under the deregulated market.
Lokpobiri gave the warning on Monday during the opening ceremony of the 2026 General Counsel and Legal Advisers Forum organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
His comments came amid renewed public concern over the failure of refiners and fuel importers to significantly reduce gantry prices despite the decline in global crude oil prices from about $120 per barrel during the United States-Iran conflict to around $72 per barrel.
The development also followed concerns raised on Sunday by the Federal Competition and Consumer Protection Commission (FCCPC), which expressed worries over what it described as possible consumer exploitation in the downstream petroleum sector after retail fuel prices failed to decline in line with falling crude oil prices.
Addressing stakeholders at the event, Lokpobiri stressed that although petrol prices are now determined by market forces under deregulation, regulators still have a statutory responsibility to protect Nigerians from excessive profiteering.
“As part of the requirements of deregulation, prices have to be determined by market forces. The NMDPRA has a unique responsibility, compounded by the Petroleum Industry Act (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.
Reacting on Tuesday, the National Publicity Secretary of IPMAN, Chinedu Ukadike, rejected allegations that marketers were exploiting consumers, insisting that many filling station operators were, in fact, suffering significant financial losses following repeated petrol price reductions by the Dangote Refinery.
Ukadike argued that before contemplating price regulation, the Federal Government should first identify the root causes of high petrol prices and create a more competitive market by ensuring government-owned refineries become operational.
According to him, marketers can only sell products based on their purchase costs.
“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.
Explaining the challenges facing independent marketers, Ukadike said many operators had incurred heavy losses because petrol prices often drop shortly after they purchase products.
“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 explained.
Ukadike maintained that petrol prices should continue to be determined strictly by the forces of demand and supply rather than government intervention.
“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.
He further argued that the government should concentrate on addressing the underlying causes of high petrol prices instead of considering price control measures.
“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,” Ukadike added.
Also reacting, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged that the Minister of Petroleum Resources has the legal authority to intervene where necessary to protect consumers from exploitation.
However, he insisted that any regulatory action should only be taken after extensive consultations with key stakeholders in the petroleum industry.
“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.
“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.
Gillis-Harry further cautioned that unilateral government action without the support of industry stakeholders could create fresh challenges within the downstream sector.
“They have the right to intervene, but if they do that and the stakeholders have a different view, that will be difficult. And that’s why the minister should mandate a meeting to speak to all stakeholders as fast as possible.
“The minister has the power to intervene in matters like this, and every stakeholder, including the refineries, must comply,” he added.
Meanwhile, the spokesman for the NMDPRA, George Ene-Ita, said he had not been briefed on any management plans regarding possible action on fuel pricing.
“I’ve not been briefed. I don’t know the action the management wants to take,” Ene-Ita told News Point Nigeria.
Checks indicate that petrol currently sells at between N1,140 and N1,210 per litre, depending on location, despite recent declines in global crude oil prices.