The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a reduction in petrol prices, urging the Dangote Refinery to lower its ex-depot price from N970 per litre. This appeal comes as the estimated landing cost of petrol in Nigeria has reportedly dropped to N900.28 per litre.
Efforts to address the pricing issue have been tied to President Bola Ahmed Tinubu’s initiative to sell crude oil to local refineries in naira. Approved during a Federal Executive Council (FEC) meeting on July 29, the initiative designated 450,000 barrels of crude oil for domestic refineries, with the Dangote Refinery as a pilot project. The plan allows the Nigerian National Petroleum Company Limited (NNPCL) to supply 385,000 barrels daily to the refinery, paid for in local currency.
However, the execution of this program has faced setbacks. The NNPCL has yet to meet its delivery target, forcing the Dangote Refinery to import crude oil to maintain operations. Devakumar Edwin, Vice President of Dangote Industries Limited, revealed that the crude supplied so far is insufficient to sustain the refinery’s production capacity of 650,000 barrels per day.
“We need 650,000 barrels per day, but NNPCL hasn’t even delivered the agreed 385,000 barrels daily,” Edwin said, noting that the refinery has had to turn to crude imports from the U.S.
IPMAN National Publicity Officer, Chinedu Ukadike, has emphasized the need for price reductions to foster healthy competition within the oil sector. He highlighted that factors such as production costs, exchange rates, and supply-demand dynamics should determine pricing.
“The naira has recently gained value, which should influence the prices of goods, including petrol,” Ukadike said. He also commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for preventing monopolistic practices, thus encouraging competitive pricing.
Despite public expectations, the naira-for-crude arrangement has not significantly reduced petrol prices. Civil society organizations, including the Coalition Against Corrupt Leaders (CACOL) and the Civil Society Legislative Advocacy Centre (CISLAC), have criticized the government for failing to ensure that local refining benefits citizens.
Debo Adeniran, National President of CACOL, blamed an entrenched “fuel cabal” for maintaining high petrol prices, citing both local and international pressures. Auwal Rafsanjani, Executive Director of CISLAC, echoed these concerns, arguing that the government’s policies prioritize revenue generation over public welfare.
Rafsanjani added, “If the government truly cares about the people, it must ensure that locally refined products offer relief to citizens. Otherwise, it defeats the purpose of operating public refineries.”
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has maintained its decision to avoid importing petroleum products, despite acknowledging that importation could be a cheaper option.
Billy Gillis-Harry, National President of PETROAN, confirmed that members are exploring supplies from the Port Harcourt refinery and awaiting further updates on product availability. “We promised the president not to import for now, but if domestic supply doesn’t meet our needs, we’ll revisit importation next year,” he stated.
While the current fuel supply arrangement has resolved scarcity issues, high prices remain a burden for many Nigerians. IPMAN and other stakeholders are optimistic that ongoing reforms and increased production capacity will eventually lead to more affordable fuel prices.
