Petroleum marketers in Nigeria have rejected the Federal Government’s proposed plan to introduce a ₦1,350-per-litre ceiling on petrol costs, arguing that market forces, competition and improved distribution efficiency should determine prices in the country’s deregulated downstream petroleum sector.
The Major Energies Marketers Association of Nigeria (MEMAN) stated its position during a virtual third-quarter media engagement held on Thursday in partnership with S&P Global Energy.
The association maintained that imposing arbitrary price limits would not resolve the underlying challenges affecting the petroleum market. Instead, it called for transparent pricing arrangements, improved supply chains and measures to reduce operating costs.
According to MEMAN, addressing supply bottlenecks and promoting efficient distribution would provide a more sustainable approach to stabilising petrol prices and improving access to petroleum products.
FG Proposes ₦1,350 Ceiling to Stabilise Petrol Prices
The marketers’ position follows an announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the Federal Government was negotiating a ₦1,350-per-litre ceiling on petrol’s ex-gantry or landing cost.
Under the proposed arrangement, refiners and importers would initially absorb costs exceeding the agreed ceiling and recover the shortfall later when market conditions improve.
Oyedele explained that the initiative, which would be reviewed monthly, was designed to reduce sudden fluctuations in petrol prices rather than restore the fuel subsidy removed in May 2023.
The government introduced the proposal in response to rising petrol prices associated with disruptions in international oil markets and increasing pressure on households and businesses.
As part of its broader intervention, the Federal Government also announced a 30-day petrol discount at Nigerian National Petroleum Company Limited filling stations, with priority given to public transport operators.
Marketers Call for Improved Supply and Distribution
MEMAN urged the government and industry stakeholders to establish clearer bulk supply arrangements covering product availability, pricing, delivery schedules and contractual obligations.
The association also called for better inventory monitoring, increased storage capacity, improved transport coordination and stronger contingency planning to minimise disruptions.
It argued that a well-organised petroleum market would encourage competition, strengthen supply security and improve outcomes for consumers without relying on government-imposed price controls or broad-based fuel subsidies.
The association further emphasised the need for non-discriminatory access to petroleum products and efficient regulatory processes to support fair competition among industry operators.
It commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its efforts to improve product quality, digitise licensing processes, publish market information and promote competition.
MEMAN also stressed the importance of accurate measurement and ensuring that consumers receive the quantities of petroleum products for which they pay.
Industry Seeks Greater Transparency in Petroleum Pricing
During the engagement, participants examined developments in global and West African refined petroleum markets, including the impact of geopolitical tensions, refinery disruptions and changing supply patterns on fuel prices.
S&P Global Energy highlighted the importance of credible regional pricing benchmarks to improve transparency and strengthen market confidence.
The presentation identified the Free on Board West Africa and STS Lomé assessments as reference points for domestically supplied and imported refined petroleum products, respectively.
Industry stakeholders argued that reliable market data and wider adoption of transparent pricing benchmarks would help establish a more predictable trading environment in West Africa.
MEMAN maintained that Nigeria should prioritise output from domestic refineries while allowing imports to bridge supply gaps and address disruptions when necessary.
The disagreement between the government and petroleum marketers highlights the challenge of balancing consumer protection with the commercial realities of fuel supply.
While the proposed ceiling is intended to moderate sudden increases in petrol costs, marketers insist that lasting price stability will depend on predictable pricing mechanisms, efficient logistics, adequate supply and fair competition across the petroleum value chain.
