Nigeria fuel marketers threaten shutdown over price caps

Independent fuel marketers in Nigeria have threatened to shut down their filling stations nationwide if the federal government attempts to impose price controls on petrol, setting the stage for a potential confrontation over the country's deregulated fuel market. The warning from the Independent Petroleum Marketers Association of Nigeria (IPMAN) follows recent government calls for lower pump prices to reflect a decline in global crude oil costs.

Chinedu Ukadike, IPMAN's national publicity secretary, stated that any move to regulate prices would violate the principles of deregulation established under the Petroleum Industry Act. He argued that market forces of supply and demand should determine prices, not government intervention. Ukadike dismissed allegations of profiteering, asserting that many marketers are facing financial losses due to frequent reductions in depot prices, particularly from the Dangote Refinery, which can leave them with expensive inventory purchased with bank loans.

The dispute has escalated amid public pressure for lower fuel prices. International crude oil prices have fallen from recent highs, with Brent crude dropping to around $71 per barrel after...