Petroleum marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have threatened to shut down filling stations nationwide over alleged pressure from the Federal Government to reduce petrol prices.

The spokesperson of IPMAN, Chinedu Ukadike, disclosed this in an interview, warning that any attempt to impose price controls in a deregulated market could trigger a nationwide shutdown.

His comments come amid increasing concerns by government authorities over what they describe as exploitative pricing by fuel marketers.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had earlier urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to take action against marketers accused of overpricing petroleum products.

Similarly, the Federal Competition and Consumer Protection Commission (FCCPC) recently cautioned marketers against taking advantage of consumers, stressing the need for fair pricing.

The government’s position follows a decline in global crude oil prices, with Brent crude and West Texas Intermediate trading at approximately $72 and $69 per barrel, respectively, down from over $100 per barrel amid easing geopolitical tensions linked to the Iran, United States–Israel situation.

Despite this drop, petrol prices in Nigeria have remained relatively high, even after recent price adjustments by the Dangote Refinery and some retail outlets. In Abuja, petrol currently sells between ₦1,210 and ₦1,300 per litre at most filling stations.

Authorities argue that the reduction in pump prices has not adequately reflected the decline in global crude oil prices, prompting warnings against exploitative pricing practices.

However, reacting to the development, Ukadike insisted that the downstream sector remains deregulated under the Petroleum Industry Act (PIA), warning that any attempt to enforce price controls would be resisted.

He lamented that marketers have recorded significant losses in recent weeks, estimating losses between ₦10 billion and ₦15 billion due to rapid price fluctuations.

According to him, many marketers are forced to sell at a loss to remain competitive, as fuel prices often drop after products have already been purchased at higher rates.

“Capital is difficult to raise, and there is no buffer for marketers. Many of us have lost between ₦10 billion and ₦15 billion due to recent price reductions. By the time products reach our stations, prices may have dropped further, forcing us to sell at a loss,” he said.

Ukadike maintained that marketers cannot be compelled to sell at government-determined prices without consideration of their purchase costs.

“You cannot regulate a deregulated market. It is not possible to dictate prices without understanding the cost at which the product was acquired. If the government attempts to enforce price control, we will shut down our stations nationwide,” he added.