The Independent Petroleum Marketers Association of Nigeria (IPMAN) has opposed a proposal by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) calling for fixed reviews of fuel prices every six months.

IPMAN argues that such a regulation would contradict the principles of the Petroleum Industry Act, which advocates for a deregulated market where market forces determine prices.

Legit.ng previously reported that PETROAN criticised the continuous reduction in fuel prices by the Dangote refinery and also Nigerian National Petroleum Company Limited it is affecting their businesses.

They argued that unpredictable market conditions resulting from frequent price adjustments discourage sustained investment and pose risks to business stability.

The marketers proposed regulatory measures to keep fuel prices for a minimum of six months to mitigate losses and foster investment certainty in the sector, Punch reports.

IPMAN disagrees with PETROAN

In reaction to the PETROAN proposal the National Vice President of IPMAN, Hammed Fashola said that fuel prices are primarily influenced by global crude oil prices and exchange rates, both of which are subject to fluctuations beyond local control.

He dismissed the proposal of enforcing fixed prices amidst volatile economic conditions, asserting that deregulation promotes healthy competition and market efficiency.

His words:

"Deregulation fosters competition. It ensures fair market access for importers and refiners alike, thereby offering consumers competitive fuel prices while discouraging monopolistic practices."
Speaking on the importation, Fashola clarified that importers operate independently of government funding and should not be restricted from importing fuel.

He highlighted the benefits of a diversified market where locally refined products can compete favourably with imported fuel, ultimately benefiting consumers with lower prices.

NNPCL, Dangote reduce fuel prices

The debate on the petrol pricing structure follows the decision by the Dangote Refinery and NNPC Limited to adjust prices.

On Thursday, March 13, 2025, the Dangote Refinery quietly lowered the PMS price at its loading gantry.

The giant refinery reduced petrol prices from N825 per litre to N815, while retail prices at partnered stations in Lagos to N860 per litre.

A few days later, NNPC Limited also adjusted its petrol pump prices at its retail outlets.

This price war was frowned upon by oil marketers under the aegis of PETROAN.

Dangote shares economic benefits of refinery

In a previous report by Legit.ng the Dangote Group has provided insight into the benefits of petroleum refining for Nigeria's economic growth

In a message shared on X, the conglomerate said that the refinery has played an important role in the economic development of Nigeria.

Some of the benefits highlighted include energy security, local job creation, and reduced dependence on imported fuel, while also lowering petrol prices in Nigeria.