The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned it will shut down filling stations nationwide if the Federal Government moves to enforce price control in the downstream petroleum sector.
IPMAN National Publicity Secretary, Chinedu Ukadike, told journalists that the petroleum market was deregulated under the Petroleum Industry Act and should not now be subjected to government-imposed pricing.
The warning comes after the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to clamp down on marketers accused of exploiting fuel consumers. The Federal Competition and Consumer Protection Commission (FCCPC) has also cautioned marketers against exploitative pricing.
The government’s push comes even as global crude prices have eased, with Brent crude and WTI trading around $72 and $69 per barrel respectively following a cooling of tensions in the Iran-US-Israel conflict. Despite the drop in crude prices and recent cuts by Dangote Refinery and some filling stations, petrol remains expensive across Nigeria, selling for between ₦1,210 and ₦1,300 per litre in Abuja.
Marketers say they’re losing billions
Ukadike said marketers have suffered heavy losses in recent weeks due to repeated price cuts, claiming operators have lost between ₦10 billion and ₦15 billion as products bought at higher prices had to be resold cheaper to stay competitive.
“Capital is hard to gather. There is no buffer area for marketers. Most of us are losing ₦10 to ₦15 billion due to the recent fuel price reduction. You buy at a particular price before you get to your station; the price had further reduced. We sell at a loss to be competitive. If you don’t sell at a competitive price, nobody will buy,” he said.
“You can’t regulate a deregulated market”
Ukadike insisted that government cannot claim the sector is deregulated while trying to dictate pump prices, warning that any such move would force marketers to close shop nationwide.
“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. 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 said.
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