Fuel Marketers Threaten Nationwide Shutdown Over Proposed Petrol Price Controls.

Fuel marketers have warned they could suspend petrol sales across Nigeria if the Federal Government attempts to impose price controls in the country's deregulated downstream petroleum sector.

The warning was issued on Tuesday by the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, who argued that government intervention in fuel pricing would undermine the principles of market deregulation.

His remarks followed comments by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who said the government would not tolerate profiteering or any practices that unfairly burden consumers. Speaking 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, the minister stressed that while petrol prices are no longer fixed by the government, regulators still have a responsibility to prevent exploitation.

Lokpobiri said the Petroleum Industry Act (PIA) empowers regulatory agencies to ensure that petroleum products remain available and that excessive profiteering is discouraged. He maintained that although prices should largely be determined by market forces, government institutions must intervene where consumers are being unfairly treated.

The minister's comments come amid growing public concern over fuel prices, with many Nigerians questioning why retail petrol prices have remained high despite a significant decline in international crude oil prices. Crude oil, which surged to around $120 per barrel during the recent conflict involving the United States and Iran, has since fallen to about $72 per barrel.

The Federal Competition and Consumer Protection Commission (FCCPC) also recently raised concerns over what it described as possible consumer exploitation, noting that domestic fuel prices have not reflected the sharp drop in global crude prices.

Responding to the government's position, Ukadike dismissed suggestions that marketers were making excessive profits. Instead, he said many independent fuel retailers were facing mounting financial losses following repeated reductions in petrol prices by Dangote Refinery.

According to him, marketers are often forced to sell fuel at lower prices shortly after purchasing stock at higher rates, leaving them with shrinking margins and increasing financial pressure.

He insisted that any attempt to dictate pump prices in a deregulated market would force marketers to shut their filling stations nationwide.

Ukadike argued that government should first investigate the underlying reasons behind high fuel prices rather than introducing price controls. He maintained that marketers simply sell products based on their purchase costs and cannot be expected to absorb losses imposed by regulatory decisions.

He also highlighted the financial challenges facing independent marketers, many of whom operate with bank loans whose repayment obligations remain unchanged regardless of fluctuations in fuel prices. At the same time, increased competition from marketers purchasing fuel at lower prices has further squeezed profit margins, he said.

Ukadike maintained that competition—not regulation—remains the most effective way to reduce petrol prices. He called on the Federal Government to increase fuel imports where necessary and accelerate the revival of local refineries to expand supply and create a more competitive market.

According to him, a properly functioning refining sector would naturally drive prices lower without the need for government-imposed price controls. He added that enforcing regulated prices in a deregulated economy would contradict the provisions of the Petroleum Industry Act.

Meanwhile, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the minister has the authority to intervene where consumers appear to be unfairly treated. However, he emphasised that any regulatory action should be taken only after consultations with key stakeholders across the petroleum industry.

He urged the Minister of Petroleum Resources to convene an emergency meeting involving regulators, refiners, marketers and other industry participants to examine the causes of current pricing concerns and agree on solutions that protect consumers while preserving market stability.

While acknowledging the government's legal powers, Gillis-Harry warned that unilateral action without industry consensus could create further challenges for the sector.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has yet to announce any specific measures in response to the minister's directive. The agency's spokesperson, George Ene-Ita, said he had not been briefed on any planned action by management.