The Independent Petroleum Marketers Association of Nigeria, IPMAN, has raised concerns over the growing financial burden imposed on its members by frequent petroleum product price fluctuations, warning that independent marketers are increasingly bearing the brunt of market volatility in the downstream sector.
The concerns were tabled during a meeting between the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Mallam Rabiu Umar, and the leadership of IPMAN as part of the regulator’s ongoing engagement with key stakeholders in the downstream petroleum industry.
Speaking on behalf of the association, IPMAN President, Alhaji Abubakar Maigandi Shettima, said constant changes in product prices have created significant challenges for independent marketers, many of whom struggle to absorb losses arising from sudden market adjustments.
Shettima noted that retailers often find themselves caught between fluctuating depot prices and consumer expectations, making it difficult to sustain profitability and business stability.
According to him, “Retailers often bear the burden of market volatility,” as he highlighted the impact of frequent product price changes on independent marketers across the country.
The IPMAN president also raised concerns over outstanding subsidy-era claims, administrative charges imposed on operators, and difficulties faced by marketers in securing direct access to products from domestic refineries.
He urged relevant authorities to address the lingering issues to improve the operating environment for independent marketers, who account for a significant share of Nigeria’s retail fuel distribution network.
Despite the challenges, Shettima assured the Authority of IPMAN’s continued support for ongoing reforms in the downstream sector and reaffirmed the association’s commitment to regulatory compliance.
He also pledged the association’s support for the Federal Government’s gas expansion agenda, including the promotion of Compressed Natural Gas, CNG, adoption among its members.
Responding, NMDPRA Chief Executive, Mallam Rabiu Umar, acknowledged IPMAN’s strategic role in ensuring nationwide availability of petroleum products, particularly at the retail level.
Umar noted that recent developments in the global energy market continue to affect domestic fuel pricing and said the Authority was engaging industry players to promote stability and business harmony across the sector.
“Recent developments in the global energy market have continued to impact domestic petroleum product pricing, and the Authority is working with industry stakeholders to promote stability and business harmony across the sector,” he said.
The meeting comes amid ongoing adjustments in Nigeria’s deregulated downstream petroleum market, where independent marketers have repeatedly called for measures to cushion the effects of price volatility and improve access to petroleum products from local refining sources.
SOURCE: sweetcrudereports.com
