Motorists Fume as Marketers Maintain High Fuel Prices Despite Global Slump

​Abuja — A wave of frustration has swept across the Federal Capital Territory (FCT) and other major cities as motorists accuse independent oil marketers of deliberately keeping petrol pump prices artificially high, despite a dramatic crash in the global cost of crude oil.

​A market survey reveals that while global crude oil benchmarks fell sharply from $150 a barrel to under $80 following a diplomatic de-escalation between the United States and Iran, Nigerian consumers have yet to feel the relief at the pumps.

​In response to the international market shift, the Dangote Refinery slashed its petrol gantry price by ₦75 per litre. Major marketers like MRS quickly adjusted their pump prices down to between ₦1,241 and ₦1,261 per litre. However, a vast majority of independent retail outlets continue to lock their meters at premium rates ranging from ₦1,335 to ₦1,360 per litre.

​The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has led the call for uniform compliance. PETROAN National President, Mr. Billy Gillis-Harry, emphasized that the current global economic climate presents a prime opportunity for importers and refiners to pass savings directly to the struggling public.

​The Marketers’ Defense: Financial Risk and Trapped Inventory

​Defending the slow adjustment, the Independent Petroleum Marketers of Nigeria (IPMAN) pointed to deep structural vulnerabilities within the country’s deregulated downstream sector.

​Mr. Chinedu Ukadike, IPMAN’s National Publicity Secretary, explained that independent dealers are trapped in a high-risk financial cycle. According to Ukadike, many marketers are currently holding expensive inventory purchased before the global price drop. Under Nigeria’s current fully deregulated framework, the federal government no longer provides a financial cushion or compensation mechanism to offset sudden market fluctuations.

​“The capital required to procure petroleum products today is staggering,” Ukadike noted, citing additional pressures such as soaring bank loan interest rates, rising insurance premiums, and escalating overhead costs. “Marketers cannot simply slash prices overnight without incurring catastrophic financial losses that could force many local stations to close permanently.”

​Calls for an ‘Energy Bank’ and Local Refining

​To break the volatile cycle of fuel pricing and shield consumers from future shocks, industry stakeholders are calling for urgent federal intervention.

ADVERTISEMENT

​IPMAN has proposed the establishment of a dedicated Petroleum or Energy Bank. This specialized financial institution would offer low-interest financing and credit lines tailored for independent marketers, working alongside domestic refineries to absorb international market shocks and stabilize pump prices.

​Furthermore, downstream operators stress that the long-term solution to high energy costs remains rooted in self-sufficiency. Experts and marketers alike are renewing pressure on the federal government to fast-track the full rehabilitation and commercial optimization of the state-owned Port Harcourt and Kaduna refineries. Diversifying domestic supply sources, they argue, is the only sustainable way to foster genuine market competition and shield the local economy from the unpredictable waves of geopolitics.