Independent petroleum marketers have warned that filling stations across Nigeria could suspend petrol sales if the federal government attempts to impose price controls in the deregulated downstream sector.
The warning came from the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, who said marketers would resist any move to dictate pump prices without considering their purchase costs.
His comments followed remarks by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who said the government would not tolerate profiteering or exploitative practices in the petroleum sector despite the deregulation of fuel pricing.
Speaking on Monday during 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 market forces should determine petrol prices, regulators still have a responsibility to protect consumers from excessive pricing.
He noted that the Petroleum Industry Act (PIA) empowers institutions such as the NMDPRA to prevent unnecessary profiteering and ensure fairness in the downstream market.
The minister’s remarks came amid growing public criticism over the failure of refiners and fuel importers to significantly reduce petrol prices despite a sharp decline in global crude oil prices.
Crude oil prices recently fell from about $120 per barrel during the US-Iran conflict to around $72 per barrel, yet retail petrol prices have remained largely unchanged.
The Federal Competition and Consumer Protection Commission (FCCPC) had also raised concerns over possible consumer exploitation, questioning why fuel prices had not reflected the drop in international crude prices.
Reacting to the government’s position in an interview with PUNCH correspondent, Ukadike dismissed allegations that marketers were exploiting consumers, insisting that many independent marketers were instead grappling with financial losses caused by frequent price adjustments, particularly by the Dangote refinery.
According to him, marketers often purchase petrol at one price only to see wholesale prices reduced before their products reach retail outlets, forcing them to sell at lower rates to remain competitive.
He argued that deregulation naturally compels marketers to reduce prices whenever competitors offer cheaper products, warning that businesses unable to compete would eventually exit the market.
“You cannot regulate a deregulated market,” Ukadike said.
“You cannot tell me the price to sell my product without first knowing how much I bought it. If they try to enforce price control, marketers will shut down filling stations nationwide.”
He added that many marketers rely on bank loans to finance fuel purchases, while lenders continue to demand fixed repayments regardless of fluctuations in fuel prices.
Ukadike urged the federal government to focus on addressing the structural causes of high petrol prices rather than introducing price controls.
According to him, increased competition through the revival of local refineries and expanded fuel importation would naturally force prices downward.
He maintained that restoring operations at government-owned refineries and encouraging more domestic refining capacity would create a more competitive market that benefits consumers without government interference.
“The primary cause of the current pricing situation is the absence of sufficient competition,” he said.
“What the government should do is ensure local refineries are working and allow more products into the market. That is what will ultimately reduce prices.”
Also weighing in on the debate, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged that the minister has the authority to intervene where consumers are being exploited.
However, he advised that any regulatory action should be preceded by consultations with key stakeholders across the petroleum value chain.
According to him, the Petroleum Stakeholders Conference provides the appropriate platform for government, refiners, marketers and regulators to jointly review market conditions and agree on measures that balance consumer protection with business sustainability.
Gillis-Harry said while the government possesses the legal authority to intervene, achieving broad stakeholder consensus would help prevent disputes and ensure compliance with any resulting decisions.
Meanwhile, NMDPRA spokesperson George Ene-Ita said he had not yet received any briefing on whether the authority intended to take further action regarding fuel pricing.
Petrol currently sells between ₦1,140 and ₦1,210 per litre, depending on location, with consumers continuing to monitor whether lower crude oil prices will eventually translate into cheaper pump prices.
