Oil Marketers Reject Price Cut Demand, Threaten Shutdown

Oil marketers in Nigeria, led by Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria (IPMAN), have firmly rejected the government's demand for a reduction in petrol prices. They warned that if the government enforces price controls, they would shut down filling stations nationwide, asserting that such actions violate the principles of market deregulation.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, has faced increasing public pressure to lower petrol prices in light of declining global crude oil prices. However, Ukadike emphasized that the market operates on a deregulated basis and cannot be dictated by the government without considering the costs of purchasing fuel.

He noted that frequent downward adjustments in depot prices have led to significant financial losses for marketers. The Federal Competition and Consumer Protection Commission (FCCPC) has also entered the debate, questioning why reductions in global crude oil prices have not translated into lower petrol prices at the pump, while monitoring for any anti-competitive practices.