IPMAN Accuses NNPCL and Dangote Refinery of Killing Competition with Cheap Fuel, Warns of Market Collapse

IPMAN has raised alarms over what it describes as an existential threat to its business operations, citing unfair competition from the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery. The association argues that the government-backed entities are selling fuel at significantly lower prices, making it impossible for independent marketers to remain profitable.

IPMAN insists that its members, who rely on imported fuel, are now selling at a loss due to the drastic price disparity. Many marketers purchased fuel at high international rates, only to be undercut by the cheaper locally refined alternatives. This, according to the association, has left thousands of marketers struggling to recover investments, with some on the verge of bankruptcy.

IPMAN Blames NNPCL and Dangote Refinery for Market Distortions

IPMAN believes that NNPCL and Dangote Refinery’s dominance in the fuel market is disrupting traditional supply chains. With NNPCL increasing local refining capacity and Dangote Refinery producing at large scale, the cost of fuel in Nigeria has plummeted, rendering imported fuel uncompetitive.

The association contends that while affordable fuel is beneficial to consumers, the government should not allow independent marketers to be driven out of business. The association argues that without policy intervention, market monopolization is inevitable, which could later result in price manipulation and supply disruptions.

IPMAN Warns of Fuel Supply Chain Disruptions

IPMAN has cautioned that its members’ financial struggles could lead to fuel scarcity in regions that still depend on independent marketers for distribution. Many marketers have already halted fuel imports due to unsustainable losses, which could create supply gaps in parts of the country.

The association further warns that if independent marketers shut down operations, thousands of fuel stations nationwide could be forced to close, leading to job losses and economic hardship. The association calls on the government to address the imbalance before the crisis escalates further.

IPMAN Urges Government to Intervene

The association has appealed to the federal government to implement policies that will protect independent marketers from being edged out of the petroleum sector. The association suggests measures such as tax relief, subsidies, or a temporary price adjustment mechanism to help marketers compete in the evolving market landscape.

The association emphasizes that its members have played a crucial role in Nigeria’s fuel distribution network for decades, ensuring supply stability even during periods of economic uncertainty. The association believes that a well-balanced policy approach can create a win-win situation where both consumers and marketers benefit.

IPMAN Fears Long-Term Market Monopolization

IPMAN has expressed concerns that if independent marketers are forced out of the market, the petroleum sector could become dominated by a few powerful players, reducing competition and potentially leading to future price hikes. The association warns that while low fuel prices seem beneficial now, an unchecked monopoly could harm consumers in the long run.

IPMAN argues that the government must take proactive steps to maintain a diverse and competitive fuel market. Allowing a few entities to control fuel distribution, it says, would not only weaken economic resilience but also expose the country to supply vulnerabilities in the future.

Call for Urgent Dialogue with Stakeholders

IPMAN has called for an emergency dialogue with the government, NNPCL, Dangote Refinery, and other industry stakeholders to find a sustainable solution to the ongoing crisis. The association believes that constructive engagement can help prevent a full-blown crisis that could impact the entire petroleum sector.

The association reiterates that it is not opposed to local refining but insists that policies must ensure a level playing field for all players. As the debate over Nigeria’s fuel market structure continues, all eyes are on the government to see whether it will address the concerns of independent marketers or allow market forces to dictate the industry’s future.