Petroleum marketers in Nigeria have warned that they could shut down operations nationwide if the Federal Government attempts to impose price controls on Premium Motor Spirit (PMS), commonly known as petrol, insisting that such a move would undermine the country’s deregulated downstream petroleum sector.
The warning follows renewed discussions over the rising cost of petrol and calls from some stakeholders for government intervention to stabilize pump prices. Marketers argue that any attempt to fix prices administratively would reverse the gains of deregulation and expose operators to significant financial losses.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have maintained that fuel pricing should remain market-driven, in line with the provisions of the Petroleum Industry Act (PIA) and the Federal Government’s policy on deregulation. Industry leaders said marketers purchase petroleum products at prevailing market rates and cannot be compelled to sell below cost without incurring heavy losses.
According to the marketers, forcing retailers to sell petrol at government-determined prices could lead to widespread fuel shortages, discourage private investment in the downstream sector and threaten the viability of many filling stations.
Speaking on the issue, industry representatives warned that if the government introduces price controls or compels marketers to sell below their acquisition costs, operators may have no option but to suspend operations nationwide.
They argued that a shutdown would be a last resort but insisted that businesses cannot continue operating at a loss in a fully deregulated market.
The marketers also urged the Federal Government to maintain a predictable regulatory environment and avoid policies that could discourage investment in the petroleum sector. They stressed that competition among suppliers, rather than administrative controls, remains the most effective way to achieve stable fuel prices over time.
The warning comes as petrol prices have continued to fluctuate across the country following the removal of fuel subsidies and the liberalisation of the downstream oil sector. Prices have also been influenced by changes in global crude oil prices, exchange rate movements and supply costs.
The Federal Government has repeatedly stated that the downstream petroleum sector is deregulated and that fuel prices will continue to be determined by market forces. However, officials have also said they remain committed to ensuring adequate fuel supply and protecting consumers from unfair market practices.
The development highlights the ongoing tension between the government’s commitment to deregulation and public concerns over the affordability of petrol, with marketers insisting that policy consistency is essential to sustaining investment and ensuring uninterrupted fuel distribution across Nigeria.
