The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, has said the absence of stable petroleum product prices remains the biggest challenge facing independent marketers, despite sustained fuel availability across the country.
Speaking during an interview with ARISE News, Ukadike attributed the persistent fluctuations in pump prices to volatility in the downstream market, saying the situation has disrupted business operations and weakened consumer confidence.
“One of the most significant problems we are encountering is price volatility. There is no stable price of petroleum products in Nigeria.”
He explained that independent marketers purchase products at prevailing market rates, making it difficult to maintain consistent pricing at filling stations.
“Whatever we are able to see every day that we want to lift petroleum products, that is the price we pay for that particular day.”
According to him, the constant changes in pump prices have affected sales and created uncertainty among consumers.
“The irregularity in pump price changes has made our customers very erratic and almost trying to lose confidence in us.”
Ukadike acknowledged the hardship faced by Nigerians but noted that marketers are also struggling with the financial implications of fluctuating prices.
“We are also Nigerians. We own filling stations and we also buy fuel. Anytime there is an increase in prices, we have to go back to the banks to see how we can increase our loans.”
He said marketers equally suffer significant losses whenever prices fall after they have purchased products at higher rates.
“When there is a decrease in price, most of us who bought at a very high price have to find ways to cushion the effect of the losses.”
On the role of the Nigerian National Petroleum Company Limited (NNPC), Ukadike said the state-owned oil company now operates under the same deregulated market conditions as other industry players.
“Since deregulation, NNPC is also struggling like other private depots trying to see where they can import petroleum products or rely on Dangote’s supply.”
He described the Dangote Refinery as Nigeria’s primary domestic supplier of refined petroleum products, adding that collaboration between the federal government and the refinery would help improve crude supply and market stability.
“Dangote is the only sole supplier of petroleum products, and most of these depots buy from Dangote.”
Despite concerns over pricing, Ukadike assured Nigerians that there is no shortage of fuel.
“We have been having uninterrupted supply of petroleum products, and there is no scarcity of petroleum products.”
He urged the government to establish a dedicated energy financing institution to help marketers access affordable credit and reduce the impact of price volatility.
“We are proposing a Bank of Energy where marketers can access loans without the high interest rates charged by commercial banks.”
Ukadike said such intervention would strengthen the downstream sector, improve marketers’ operations and ultimately benefit consumers through a more sustainable fuel distribution system.
Ojo Triumph
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