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Petroleum industry operators have called on the Federal Government to reconsider its proposed petrol price ceiling, warning that limiting supply costs without addressing underlying market challenges could create fresh difficulties for fuel distribution across the country.
The disagreement centres on the government’s proposal to negotiate a maximum ex-gantry price of ₦1,350 per litre, a measure designed to cushion consumers against rising petrol prices and reduce sudden increases in the cost of the commodity.
The Major Energies Marketers Association of Nigeria expressed reservations about the proposed intervention during a virtual media engagement held in collaboration with S&P Global Energy. The association favoured a market-driven approach supported by improved competition, transparent pricing and more efficient supply chains.
Under the government’s proposal, refiners and importers would initially bear any costs above the agreed threshold, with provisions for recovering the difference when market conditions become favourable. The arrangement would be reviewed monthly and, according to the government, would not constitute a return to fuel subsidies.
Marketers argued that the sustainability of petrol pricing depended largely on the availability of products, transportation efficiency and the cost of moving fuel from depots to retail outlets. They urged authorities to address these factors instead of relying primarily on price restrictions.
The association also called for increased domestic refining capacity to reduce dependence on imported petroleum products. It maintained that imports should complement local production when domestic refineries are unable to meet national demand.
On industry regulation, the marketers emphasised the need for clear contractual terms, reliable market information and fair competition among operators. They also supported measures to improve product quality and strengthen monitoring throughout the distribution chain.
The debate presents the government with the challenge of balancing consumer protection with the commercial realities of the petroleum sector. Whether the proposed price ceiling can achieve its intended purpose without creating additional supply pressures remains a key concern for stakeholders in the downstream industry.
