By Charles Pemu 
Over 4,900 petrol retail outlets have shut down operations as independent marketers grapple with massive financial losses due to volatile fuel prices, downstream oil operators revealed
The crisis stems from repeated price fluctuations by the Dangote Refinery, which has revised petrol prices six times in 2025 alone, falling from N950 to N835 per litre. This instability, coupled with high logistics costs and lack of financing, has forced marketers to scale back or pool resources to afford a truckload of fuel.
President Bola Tinubu’s full deregulation of the downstream sector in October 2024 eliminated fuel subsidies, leaving prices to market forces and triggering a fierce battle between local refiners and importers.
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), over 70% of its 7,000 outlets have shut down. PETROAN President Billy Gillis-Harry cited unpredictable pricing and a lack of access to loans as key drivers of the closures.
Meanwhile, over 70 tank farms—representing 65% of Nigeria’s 120 licensed facilities—have been abandoned due to low patronage, as retailers increasingly bypass them for cheaper alternatives.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that its members—over 20,000 nationwide—are operating minimally, often teaming up to share fuel purchases. IPMAN’s spokesperson, Chinedu Ukadike, highlighted losses of N300,000 to N1 million per truck due to price drops during long delivery delays.
Industry stakeholders are now urging government intervention through effective regulation and economic buffers to stabilise the market and prevent further collapse of Nigeria’s fuel distribution system.