The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that the Dangote Petroleum Refinery should be selling Premium Motor Spirit (PMS), also known as petrol, for less than its current price of N825 per litre.
Chinedu Ukadike, the Publicity Secretary of IPMAN, made this assertion in an interview, arguing that the refinery has the advantage of favourable conditions that should enable it to reduce its ex-depot price.
Ukadike was reacting to recent comments made by the President of the Dangote Group, Aliko Dangote, who said Nigerians are paying 55 per cent less for petrol compared to citizens of other West African nations, largely due to the local refining of petroleum and the Federal Government’s naira-for-crude policy.
While acknowledging that petrol is indeed cheaper in Nigeria than in neighbouring countries, Ukadike maintained that the price should be much lower domestically. He argued that since Nigeria produces crude oil and the government supplies it in naira to Dangote’s refinery, local consumers should benefit more directly from these advantages.
“I agree that petrol is cheaper in Nigeria than in other West African countries. But many of those countries do not produce crude or refine locally. Nigeria does. The forex component has been largely eliminated for Dangote. Therefore, Nigerians should benefit from a reduced price, potentially as low as N750 per litre,” Ukadike said.
He commended Dangote for ensuring fuel availability and eliminating scarcity-induced queues but stressed that pricing must still be addressed. According to him, stabilising the naira is key to further price reduction.
“Availability has improved significantly, thanks to the refinery. But on price, we’re not quite there yet. If the naira strengthens, the cost of PMS will reduce. At a more stable exchange rate, the cost of petrol could fall to around N750 to N770,” he explained.
Ukadike suggested that with the naira currently trading at about N1,600 to the dollar, the pump price of PMS is inflated. He predicted that if the naira strengthens to around N1,100 or N1,200 per dollar, the retail price could dip below N750.
Meanwhile, during a recent tour of the 650,000 barrels-per-day Dangote Refinery by the President of the ECOWAS Commission, Dr. Omar Touray, Dangote revealed that the facility currently sells petrol between N815 and N820 per litre. He emphasised that Nigerians are paying just 55 per cent of what other West Africans pay, with petrol costing around $1 (N1,600) per litre in those countries.
Dangote also cited the impact of the refinery’s diesel production, noting that it slashed diesel prices from N1,700 to N1,100, positively affecting key sectors such as agriculture, mining, and manufacturing.
During President Bola Ahmed Tinubu’s recent visit to the refinery, Dangote reiterated that the government’s decision to accept naira for crude oil had significantly contributed to the price reductions of refined products.
Despite these assertions, a recent report by S&P Global indicated that prices of products from the refinery remain relatively high compared to declining global crude prices.
As of press time, the Dangote Group had not issued an official response to IPMAN’s remarks.
ADEOLA KUNLE
