A fresh dispute has erupted in Nigeria’s downstream oil sector as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has dismissed a proposal by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) to introduce a six-month price regulation for petrol.
PETROAN recently called for the downstream regulator to enforce a policy ensuring fuel prices are only reviewed every six months, arguing that the frequent price drops in the market are causing massive financial losses for filling station owners.
The association’s concerns stem from what industry observers have termed a “price war,” with the Dangote refinery slashing its petrol gantry price from ₦890 per litre to ₦815 per litre in just a few weeks.
This move forced the Nigerian National Petroleum Company Limited (NNPCL) and private importers to follow suit, further driving down prices.
However, while PETROAN insists this price volatility threatens investments and discourages stability in the sector, IPMAN has strongly opposed any form of price control, stating that such a measure contradicts the principles of deregulation outlined in the Petroleum Industry Act.
Reacting to PETROAN’s demand, IPMAN’s National Vice President, Hammed Fashola, outrightly rejected the proposal, arguing that fuel prices should remain flexible based on market forces, particularly the exchange rate and crude oil price fluctuations.
“It cannot work, and I’m not in support of that. If the PETROAN leaders really understand what deregulation is about, they will not suggest this proposal,” Fashola stated.
He emphasized that a six-month price freeze is unrealistic in a market where the naira-dollar exchange rate significantly impacts the cost of fuel.
“Are you telling me that if the naira appreciates against the dollar and the global crude oil price drops, we should still hold our price for six months and keep selling at higher rates? It is not done,” he said.
Fashola further argued that deregulation encourages competition, which ultimately benefits consumers by driving prices down, rather than allowing a monopoly to dictate pricing.
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“What the government is doing is to give a level playing field to everyone. If you’re an importer, nobody will stop you from bringing in fuel as long as you can sell it. If you’re a local refiner, you will also have to set prices carefully because there are alternatives for consumers,” he explained.
He highlighted that the recent reduction in fuel prices—from over ₦1,000 per litre to around ₦860 per litre—was a direct result of deregulation and competition.
“If someone can sell petrol at ₦700 per litre, why should anyone stop them? That’s how a free market works,” he added.
Fashola also dismissed concerns about fuel importers undercutting local refiners, stating that importers do not rely on the Central Bank of Nigeria for foreign exchange and should not be restricted from operating in the market.
“I am sure those importing are not getting their dollars from the CBN. They source their own money, so why stop them? If we reach a point where locally refined fuel becomes significantly cheaper, then importation will naturally phase out,” he noted.
With the fuel pricing debate heating up, the battle lines between market-driven pricing and regulatory intervention have been drawn.
While PETROAN seeks protection against unpredictable price fluctuations, IPMAN insists that only competition—not regulation—can create a stable and fair market for all stakeholders.
As the discussion unfolds, consumers remain the biggest beneficiaries of the ongoing price reductions, while marketers brace for further changes in Nigeria’s evolving fuel landscape.