IPMAN Urges Dangote Refinery to Reduce Petrol Prices Below N825
Marketers Say Nigerians Should Pay Less Than N750 Per Litre
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS), also known as petrol, below the current rate of N825 per litre.
Speaking in an interview, IPMAN Publicity Secretary Chinedu Ukadike stated that the refinery has all the necessary factors in place to offer a lower ex-depot price. He argued that Nigerians should be paying less for petrol, especially considering Nigeria is a crude-producing nation.
Dangote: Nigerians Pay 55% Less Than West African Neighbours
Refinery Says Local Pricing Has Dropped Significantly
Aliko Dangote, President of the Dangote Group, recently claimed that Nigerians are benefiting from lower petrol prices, paying around 55% of what is charged in neighbouring West African countries.
Speaking during a visit by ECOWAS officials and President Bola Tinubu to the 650,000 barrels-per-day refinery in Lekki, Lagos, Dangote highlighted the impact of the Federal Government’s naira-for-crude policy. He emphasized that this arrangement has helped reduce fuel costs and supported sectors such as agriculture, mining, and industry.
“In neighbouring countries, the average price of petrol is around $1 per litre, which is N1,600. But here at our refinery, we’re selling at between N815 and N820,” Dangote said.
IPMAN Responds: Petrol Should Be Cheaper in a Crude-Producing Nation
Naira-Based Crude Supply Should Lower Local Fuel Prices
While acknowledging that petrol prices in Nigeria are lower compared to other West African countries, Ukadike maintained that the pricing should be more favourable to Nigerians. He argued that since Nigeria produces crude oil and Dangote is receiving crude in naira, the refinery should sell PMS at a significantly reduced rate.
“We’re a crude oil-producing state. PMS should be far lower as the President has also decided to give him crude in naira,” Ukadike said.
He estimated that petrol should cost between N750 and N780 per litre based on production costs and the prevailing exchange rate.
Strengthening the Naira Key to Cheaper Petrol, Says IPMAN
Exchange Rate Is a Major Determinant of Fuel Price
Ukadike stressed that the major factor currently keeping petrol prices high is the exchange rate. He predicted that a stronger naira would directly lead to cheaper pump prices.
“If the naira appreciates to N1,100 per dollar, petrol should sell below N750 per litre,” he said.
As of now, the dollar is trading around N1,600. Ukadike called on the Federal Government to continue efforts to stabilize and strengthen the local currency in order to reduce the cost of refined petroleum products for consumers.
Dangote Defends Pricing Despite S&P Global’s Criticism
Refinery Credits Naira-for-Crude Policy for Price Drops
During Tinubu’s recent tour of the refinery, Dangote reiterated that his facility has consistently reduced fuel prices since the launch of operations, attributing the improvements to domestic refining and government policy.
However, a recent report by S&P Global argued that Dangote’s petrol prices remain high when compared to the global drop in crude oil prices. The refinery’s spokesperson, Tony Chiejina, has not responded to IPMAN’s comments as of the time of reporting.
Conclusion
The debate over fuel pricing continues as IPMAN challenges Dangote Refinery to reflect Nigeria’s crude production advantage and government-backed naira-for-crude policy in its pricing strategy. While availability has improved, stakeholders insist that affordability remains a key issue in the post-subsidy era.
