The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS), stating it should be sold for less than the current N825 per litre.
Speaking with The PUNCH, IPMAN’s Publicity Secretary, Chinedu Ukadike, argued that the refinery enjoys several advantages—including access to crude oil in naira—that should enable it to lower its ex-depot petrol prices.
Ukadike was responding to a recent statement by Dangote Group President, Aliko Dangote, who claimed that Nigerians currently pay about 55% less for petrol than citizens in other West African nations. Dangote also credited the Federal Government’s naira-for-crude policy with helping stabilize local fuel prices.
While acknowledging that petrol is indeed cheaper in Nigeria compared to neighbouring countries, Ukadike said the pricing could still be more favorable for Nigerians. “Nigeria produces crude oil and now refines it locally. That should reflect more significantly in pricing,” he said.
“Most of those countries being compared to us do not produce crude oil, nor do they refine in their local currencies. With the advantages Dangote Refinery enjoys—like getting crude in naira—we should be paying far less, somewhere around N750 per litre,” he added.
Ukadike praised the refinery for resolving the issue of fuel availability and eliminating scarcity and queues. However, he emphasized that the pricing must now be addressed.
“What Dangote has achieved is the consistent supply of fuel. That’s commendable. But price-wise, we’re not there yet. If the Federal Government can stabilize the naira and strengthen its value, pump prices will definitely drop,” he noted.
He estimated that with the current economic conditions, petrol should retail for between N750 and N780 per litre. “If the naira strengthens further—say to around N1,100 per dollar—then the price of petrol could drop below N750,” Ukadike projected.
Dangote, during a recent visit by ECOWAS officials to the 650,000 barrels-per-day facility in Lekki, reiterated that his refinery has helped reduce fuel costs across the economy. He cited the diesel price drop from N1,700 to around N1,100 as an example of its economic impact.
“Nigerians may not realize it, but they are paying significantly less than citizens in neighbouring countries, where petrol goes for as much as N1,600 per litre,” Dangote said.
He attributed the affordability of products from his refinery to local refining and the naira-for-crude policy initiated by President Bola Tinubu, which eliminates the need for costly forex transactions in crude procurement.
Despite Dangote’s claims, a recent report by S&P Global observed that fuel prices from the refinery remain relatively high, even as global crude prices have declined. As of the time of reporting, Dangote Refinery spokesperson Tony Chiejina had not issued an official response to IPMAN’s comments.
