Pressure mounts on marketers over high petrol pump price

· PETROAN, IPMAN divided over FCCPC, minister’s compliance order

Pressure continues to mount on oil marketers across the country to comply with provisions of the Petroleum Industry Act (PIA) 2021 that petrol prices must be cost-reflective of prevailing market forces.

Yesterday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), joined the Federal Competition and Consumer Protection Commission (FCCPC) in warning oil marketers against “profiteering and arbitrary increases in the pump prices of petroleum products.”

The NMDPRA’s warning comes just three days after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the 2026 NMDPRA General Counsel and Legal Advisers Forum, directed the Authority to intensify surveillance across the downstream sector and ensure that Nigerians benefit from the recent fall in global crude oil prices.

But the fuel marketers responded swiftly to these directives, warning that they will shut down filling stations nationwide if the Federal Government attempts to impose price controls on petrol in the country’s deregulated downstream petroleum sector.

Yet, another body, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), aligns with the ministerial directive, insisting that the Minister has the authority to intervene in the interest of consumers. The body however added a caveat that any decision should be taken after consultations with stakeholders.

PETROAN therefore called on the Minister of Petroleum Resources to convene an emergency meeting involving regulators, refiners and marketers to address the pricing concerns and arrive at solutions acceptable to all parties.

The NMDPRA, in a signed statement by its Director, Corporate Affairs, Ondaje Ijagwu, expressed concern over the outcome of its findings from surveillance of the downstream petroleum market suggesting undue exploitation of consumers.

The regulator, in a statement issued yesterday by it’s the Authority’s Head of Media and Public Relations, George Ene-Ita, said it had commenced monitoring activities at depots and retail outlets across the country and would not hesitate to sanction marketers found engaging in price gouging.

The statement, titled: ‘Pump Prices of Petroleum Products Must Be Cost Reflective’, noted that the authority had taken cognisance of the downward movement in international crude prices and was committed to ensuring that the benefits of market realities are reflected in domestic petroleum product prices.

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority notes the global drop in crude oil prices and wishes to assure the Nigerian public that pump prices of petroleum products must be cost-reflective, in accordance with the Petroleum Industry Act (2021).

“Oil Marketing Companies have been cautioned against price gouging and profiteering. Depots and retail outlets are being monitored, and regulatory sanctions will be applied where applicable.

“The Authority is working with security agencies and other critical stakeholders, including the Federal Competition and Consumer Protection Commission, to guarantee consumer protection.

“NMDPRA reassures the public of its commitment to monitoring the midstream and downstream sector and ensuring adequate and reliable supply of petroleum products nationwide,” the statement read.

Earlier in the week, Lokpobiri had directed the NMDPRA to strengthen its oversight functions and ensure that no operator exploits Nigerians through unjustifiable pricing practices.

In issuing the directive, the minister said the deregulation of the downstream petroleum sector was not intended to create opportunities for excessive profiteering but rather to encourage competition, efficiency and fair pricing.

Lokpobiri had stressed that while government would not fix prices since the downstream sector has been deregulated, nonetheless, he argued, market operators must act responsibly and ensure that price adjustments accurately reflect changes in international oil prices and foreign exchange conditions.

“Pricing is also another issue, and I think that is one issue that I want this forum to deal with today. As part of the requirements of deregulation, prices have to be determined by market forces. When an 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. I listen to discussions on television every day.

“They are calling me out. Mr. Lokpobiri should come and speak up. But I am not engaged in any press war with anybody. 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 all over the world to ensure that there is no profiteering. The PIA specifically vested government institutions, including the NMDPRA,” he said at the Abuja Forum on Monday.

The National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, while reacting to the Minister’s comments at the Forum, warned that enforcing price controls in a deregulated market would contradict the provisions of the PIA and discourage investment in the sector.

According to Ukadike, allegations that marketers were profiteering was false, insisting that many operators were instead recording heavy losses due to repeated reductions in depot prices, particularly by the Dangote Refinery. He threatened that should the government try to arm twist marketers, then they may be left with no choice other than to shut down their retail outlets.

“If the government tries to enforce price control, we will shut down our filling stations nationwide. You cannot operate a deregulated market and at the same time dictate the price marketers should sell their products without considering the cost of purchase,” he said.

The IPMAN spokesman argued that marketers often buy fuel at higher prices only for depot prices to fall before they can sell, leaving them with losses while still servicing bank loans used to finance purchases.

According to him, the solution to high petrol prices is not government intervention in pricing but increased competition through improved local refining capacity and expanded fuel importation.

He urged the Federal Government to focus on reviving domestic refineries and creating an environment that encourages competition, which he said would naturally drive down fuel prices.

The Commission said the measure has become necessary after it observed that in spite of a downward review of the gantry prices of petrol by domestic refiners, marketers, depot owners, and retail outlet operators only reflected a negligible price reduction which are not commensurate with the steep fall in crude prices in the global market.

The positions by Lokpobiri, NMDPRA and FCCPC may be right. This is because, following a ceasefire agreement between U.S. and Iran two weeks ago and the reopening of the Straits of Hormuz, crude oil prices have been on a steady decline, falling to $71.99 per barrel (Brent crude) and $69.23 per barrel (WTI) yesterday- a sharp drop from the peak of $120 per barrel in April, returning to the prices in the pre- US-Iran war era in February.

Recall that the global spike in crude prices led to local refiners and marketers raising pump prices swiftly across the country, with petrol price climbing to between N1,350 to N1,500 and diesel selling N2,000 as hostilities intensified in the gulf between April and May. In February, petrol averaged between N800 and N900 per litre at the retail pumps. Presently, notwithstanding the global price fall of crude oil, petrol is still sold at average of N1,200 while some local refiners fixed between N1,025 and N1,075 as their gantry prices.