Petroleum marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Abia State have threatened to withdraw services if the state government does not reverse a recent increase in taxes.
The association issued a 21‑day ultimatum to the government, describing the new taxation as “outrageous” and unsustainable.
In a statement signed by IPMAN Chairman Mazi Oliver Okolo and Secretary Imo Mascot Obike, the marketers said the consolidated revenue levy for petroleum marketers has been increased by over 600 percent, escalating from ₦95,000 to ₦600,000 annually without prior consultation. They noted that this comes amid already challenging business conditions following the removal of the fuel subsidy.
The association accused the Abia State Board of Internal Revenue Service (ABIRS) and other agencies of routinely visiting filling stations to demand additional payments, which they described as “extortionary practices” targeting operators. IPMAN warned that such actions threaten the sustainability of petroleum businesses in the state.
ABIRS Chairman Prof. Udo Ogbonnaya, however, defended the revised levy, stating that the ₦600,000 annual fee was part of a comprehensive review and “is not exploitative.” He urged marketers to report any official demanding payments beyond the consolidated levy.
IPMAN emphasized that failure to reverse the tax increase could force several operators out of business, which may result in increased fuel prices for consumers across Abia State. “Our members cannot continue to operate under such financial strain while being subjected to arbitrary charges,” the association noted.
The dispute highlights ongoing tensions between petroleum marketers and state tax authorities, raising concerns over the potential impact on fuel supply and affordability in Abia if the conflict escalates. The association has called on the state government to engage in dialogue and review the levy promptly.