Petrol price volatility causing us billions in losses, Nigerians not sympathetic, oil marketers say

Oil marketers in Nigeria have expressed frustration over the losses they suffer due to volatility in the downstream petroleum sector, with many consumers showing little sympathy for their financial struggles, according to the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike. This issue has been exacerbated by an ongoing conflict in the Middle East, driving up global crude oil prices.

According to Ukadike, marketers experience significant losses when prices unexpectedly drop, as consumers pressure them to maintain current pump prices even when the cost of obtaining petrol increases. Meanwhile, they are expected to lower prices when costs decrease, creating a challenging situation for independent marketers who must cover expenses like purchasing products, transportation, storage, and depot charges.

Ukadike questioned how marketers, who still operate over 300 trucks due to poor road conditions, would manage a sudden N25 reduction in petrol prices after purchasing products at higher prices. Another oil marketer, Paul Akams, echoed these concerns, stating that the high cost of petrol affects everyone along the value chain, from marketers to transport operators and consumers.

The surge in petrol prices saw an average increase from N1,077–N1,205 in early July 2026 to N1,395–N1,500 for most of September, although retail prices have recently dropped to an average of N1,370. However, the retailers also highlighted the issue of petrol smuggling to neighboring countries, where prices may be lower, creating an incentive for marketers to illegally transport products across borders.

While the level of smuggling has reportedly dropped significantly compared to previous years, the marketers emphasized that effective border monitoring and accurate product tracking are essential for reducing such activities. They also suggested the establishment of an Energy Bank or Petroleum Bank to help marketers cope with price volatility, accessing funds when petrol prices rise to continue their operations without severe financial pressure.

In March, oil marketers had raised concerns about the financial strain caused by the spike in petrol prices linked to the Middle East conflict, noting that purchases required a larger financial outlay while returns were very low and could be insufficient to cover high interest rates on bank loans. Additionally, demand had dropped drastically, with some customers purchasing significantly less petrol than before.

Oil marketers maintained that the rising cost of petrol supply had increased their financial burden, many of whom rely on bank loans to finance their purchases.