Fresh tensions are brewing in Nigeria's downstream petroleum sector as independent fuel marketers have warned they could shut down filling stations across the country if the Federal Government attempts to impose price controls on petrol in the deregulated market.
The warning follows recent comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who directed regulators to ensure Nigerians are not exploited through excessive fuel pricing, despite the country's deregulated petroleum market.
Speaking during an interview on Tuesday, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, insisted that any attempt by the government to dictate pump prices would undermine the principles of deregulation and force marketers to suspend operations nationwide.
The latest disagreement comes amid growing public concern over the continued high cost of Premium Motor Spirit (PMS), despite a sharp decline in global crude oil prices. International oil prices, which surged to about $120 per barrel during the recent US-Iran conflict, have since fallen to around $72 per barrel, yet petrol prices across Nigeria have remained largely unchanged.
Currently, petrol sells between N1,140 and N1,210 per litre in different parts of the country.
Earlier this week, the Federal Competition and Consumer Protection Commission (FCCPC) expressed concern over what it described as possible consumer exploitation in the downstream petroleum sector, questioning why the reduction in crude oil prices has not translated into significantly lower pump prices.
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 pricing is now driven by market forces, the government retains the responsibility of protecting consumers from unfair practices.
He said:
"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."
However, IPMAN dismissed allegations that marketers are profiteering, arguing that many operators are instead struggling with mounting financial losses caused by frequent price adjustments, particularly those initiated by the Dangote Refinery.
Ukadike said marketers often purchase fuel at one price only for the market price to fall before the products reach their filling stations, forcing them to sell at losses to remain competitive.
He warned:
"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."
Explaining the financial burden facing independent marketers, he added:
"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."
Ukadike maintained that government efforts should focus on creating a more competitive market rather than fixing prices, arguing that increased local refining capacity and greater product availability would naturally drive down fuel costs.
According to him:
"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 further argued that the Federal Government should first identify the underlying causes of high petrol prices instead of considering market intervention.
"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."
Meanwhile, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for dialogue rather than confrontation.
Its National President, Billy Gillis-Harry, acknowledged that the Minister of Petroleum Resources and regulatory agencies possess the legal authority to protect consumers, but insisted that any intervention should be preceded by consultations with industry stakeholders.
He said:
"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."
Gillis-Harry also warned that unilateral action without industry consensus could create further challenges for the 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."
When contacted, NMDPRA spokesperson George Ene-Ita said he had not yet been briefed on any regulatory action concerning the matter.
"I’ve not been briefed. I don’t know the action the management wants to take."