Nigeria Fuel Marketers Threaten Shutdown Over Government Price Directives

The Government of Nigeria is locked in a dispute with petroleum marketers over the slow reduction of domestic fuel prices despite a sharp decline in global crude oil costs. Following the de-escalation of tensions between the United States and Iran, crude prices dropped from $120 to approximately $72 per barrel. In response, Minister of State for Petroleum Resources Heineken Lokpobiri directed marketers to immediately lower pump prices for Premium Motor Spirit (PMS) and ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to prevent profiteering and ensure accurate product dispensing.

While the Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited implemented wholesale price cuts, the Federal Competition and Consumer Protection Commission (FCCPC) characterized retail reductions as token. To further lower costs, the administration of President Bola Tinubu suspended Value Added Tax and excise duties on petroleum products. Minister of Finance Taiwo Oyedele stated the government is engaging regulators to address the tendency of marketers to raise prices quickly during spikes but delay reductions during declines.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) responded by threatening a nationwide shutdown of filling stations. IPMAN spokesperson Chinedu Ukadike argued that government pressure to implement price controls contradicts the deregulated nature of the sector under the Petroleum Industry Act of 2021. He claimed that marketers have lost between N10 billion and N15 billion due to recent price volatility and competitive pressures.