The persistent volatility in petrol prices has dealt a severe blow to marketers of Premium Motor Spirit (PMS), with losses amounting to ₦200 billion over the past six months.
The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, disclosed this yesterday.
Declining Prices and Market Shrinkage
According to Ukadike, the continuous fluctuation in fuel prices has significantly impacted marketers, particularly as prices have been on a downward trend.
“The fluctuations have led to persistent losses for marketers, especially as prices have trended downwards recently. Marketers have lost over ₦200bn in the last six months due to price volatility,” he stated.
The losses have also led to a drastic reduction in the number of active bulk traders in the market. The number of marketers dealing in bulk has plummeted from 70 in September 2024 to fewer than 30 as of March 2025.
Fierce Competition Driving Down Prices
Ukadike noted that increased competition in the market has further compressed prices, forcing many players out of the sector.
“This has narrowed down the number of players trading products in bulk. Active bulk traders have reduced from over 70 marketers in September 2024 to less than 30 in March 2025. Prices to retailers have been relatively low due to competition,” he explained.
Potential Supply Crisis Looms
The IPMAN spokesman expressed concerns that the continuous capital drain from the downstream sector could lead to an eventual supply crisis. He warned that if the trend persists, the sector may witness a further contraction, which could exacerbate fuel shortages and lead to sharp price hikes.
“The fear is that capital migration from the downstream sector may exacerbate any supply shock in the industry. For example, during the recent impasse between Dangote Refinery and the Federal Government, ex-depot prices surged to as high as ₦900 per liter in some states. With only a few marketers currently trading petroleum products, any further structural changes could lead to severe increases in pump prices in the near future,” Ukadike cautioned.
Uncertain Future for Downstream Operators
With fewer marketers participating in fuel trading and volatility persisting, the downstream petroleum sector faces an uncertain future. Industry stakeholders are calling for policy interventions to stabilize fuel pricing and prevent further losses that could cripple the market.
