Editor’s Note:
This report provides background and context on an ongoing debate around fuel pricing authority in Nigeria following subsidy removal.
Background: Fuel Pricing After Subsidy Removal
Nigeria’s downstream petroleum sector has remained under intense scrutiny since the removal of fuel subsidy. While prices were expected to reflect market realities, disagreements have continued over who truly has the authority to set pump prices and how fair competition can be achieved.
At the centre of one such dispute is the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian National Petroleum Company Limited (NNPCL).
IPMAN’s Position on NNPCL Pump Prices
Speaking on the matter, Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, stated that independent marketers are not bound by pump prices announced by NNPCL.
According to him, NNPCL operates as a commercial entity and cannot simultaneously function as a regulator of fuel prices across the market. He maintained that the prices released by NNPCL represent company-specific selling prices, not a legally binding national benchmark.
Depot Prices and Regional Market Realities
Anyaso explained that in regions such as the South-East, pump prices should logically reflect private depot supply costs, logistics, and market conditions rather than a single national template.
He argued that forcing independent marketers to follow NNPCL prices without considering depot realities distorts the market and places smaller operators at a disadvantage.
Concerns Over Exploitative Pump Prices
While opposing NNPCL’s pricing authority, IPMAN also condemned fuel stations selling petrol at excessively high prices, reportedly reaching ₦600 per litre at the time.
Anyaso described such practices as exploitative, stressing that market liberalization should not translate into unchecked profiteering at the expense of consumers.
Call for More Importers to Break Monopoly
A major concern raised by IPMAN is NNPCL’s dominance as the primary importer of petrol (PMS). Anyaso urged the Federal Government to issue licences to more qualified importers, noting that competition is essential for price stability.
According to him, allowing multiple importers into the market would naturally introduce price competition, reduce supply pressure, and limit monopolistic influence.
Why Competition Matters in Fuel Pricing
Industry observers have long argued that a single dominant supplier undermines true deregulation. IPMAN’s position aligns with broader calls for a fully competitive downstream market, where prices are shaped by supply, demand, and efficiency rather than administrative influence.
Such competition, Anyaso said, would allow prices to “find their natural level” while still protecting consumers from abuse.
The disagreement between IPMAN and NNPCL highlights unresolved structural issues in Nigeria’s post-subsidy fuel market. Questions around pricing authority, competition, and consumer protection remain central to economic stability and daily life.
As fuel costs continue to affect transport, food prices, and household spending, clarity on market rules and genuine competition will remain critical to restoring public confidence in the petroleum sector.
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