In an unexpected turn of events, Nigeria’s Independent Petroleum Marketers Association (IPMAN) is protesting against the government due to the unprecedented reductions in fuel prices, which have rendered their imported fuel stocks unprofitable.
These drastic reduction in fuel prices started in November 2024, when the Dangote refinery, lowered the price of petrol from N990 to N970 and N899 per liter in quick successions, which prompted NNPC to follow suit – reducing the product from N1,040 to N899 per liter.
On Thursday, March 13TH 2025, the 650,000 barrels per day capacity refinery, lowered its petrol price again to N825 per liter. reflecting the intense price war between the NNPC and Dangote refinery.
Traditionally, Nigerians have protested against increase in fuel prices. However, the current scenario is reversed, with fuel prices dropping from N1,040 to N825 per liter in a short period of time. This decline is largely attributed to Dangote Refinery’s strategic price reduction to ₦925 per liter, prompting NNPCL to follow suit.
In an exclusive interview with Sunday PUNCH, the National Vice President of IPMAN, Hammed Fashola, disclosed that while the price war has benefited Nigerians, the unpredictability of fuel price reductions is forcing oil marketers to cut their purchases, leading to significant daily losses.
“The ongoing price reduction is affecting oil marketers negatively because we are losing money. For instance, if I buy products at N900 per liter today and the price drops by evening, you can see the problem, especially if the product is meant to last a month. That is the challenge marketers are facing now.
“Not buying large volumes of PMS is the only way to play it safe because when you buy in bulk, the price may drop again, which is exactly what is happening now. For all marketers, that is the reality we are dealing with.”
IPMAN members, who rely on importing fuel, now face financial losses as reduction of fuel prices have led to unstable oil market. Expressing concerns over the sustainability of their operations, IPMAN has urged the government to address the pricing disparities to ensure a level playing field in the petroleum sector.
The Nigerian government, led by President Bola Tinubu, has welcomed the price reductions, viewing them as a relief for consumers burdened by high fuel costs. The administration attributes this positive change to its policies and increased competition from local refineries like Dangote’s.
As at today, the cost of PMS significantly dropped to N774.82 per liter, across NNPC filling stations in some states in the country, making it cheaper than Dangote Refinery’s price of N825 per liter.
“Prices of PMS could further reduce to as low as N500 per liter if crude oil drops to around $40 per barrel and the naira strengthens to below N1,000 per dollar,” Fashola told Sunday Punch.
Consumers have expressed optimism on the development. However, while lower fuel prices are a welcome development, there are concerns about the long-term implications for the market, especially regarding the potential for monopolistic practices if independent marketers are pushed out.
The current situation presents a complex challenge for Nigeria’s petroleum sector. Balancing the benefits of lower fuel prices for consumers with the viability of independent marketers is crucial. Ensuring fair competition and preventing market monopolies will be essential to maintain a healthy and sustainable fuel market in Nigeria.
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