The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the Dangote Petroleum Refinery should reduce the price of Premium Motor Spirit (PMS) to below N800 per litre, citing enabling factors such as access to crude in naira and the absence of foreign exchange constraints.
In an interview with our correspondent, IPMAN’s Publicity Secretary, Chinedu Ukadike, argued that despite current prices at the refinery ranging between N815 and N825 per litre, domestic refining conditions justify a lower pump price — potentially around N750 to N780 per litre.
“I don’t feel it’s cheap. With the facilities and the enabling environment he enjoys, petrol should be sold around N770,” Ukadike said. “Nigeria is a crude oil-producing country. With crude being supplied in naira, Nigerians should benefit from cheaper fuel.”
Ukadike acknowledged that the refinery had solved the age-old problem of scarcity, eliminating long queues at filling stations. However, he maintained that availability must now be complemented by affordability. “What Dangote has conquered is scarcity. But price-wise, we are not there yet,” he added.
His remarks come in response to a recent statement by Aliko Dangote, President of the Dangote Group, who noted that Nigerians pay only about 55 per cent of what other West African citizens spend on petrol. Speaking during a visit by ECOWAS officials to the 650,000 barrels-per-day refinery in Lekki, Dangote highlighted the impact of the naira-for-crude policy and local refining on lowering fuel prices.
“In neighbouring countries, petrol sells for about N1,600 per litre. We’re selling it here between N815 and N820,” Dangote said, stressing that local refining had led to significant savings for Nigerians.
While acknowledging this regional pricing advantage, Ukadike insisted that fuel prices could go lower if the naira appreciates further against the dollar. “If the naira gains to N1,200/$, petrol should fall below N750,” he projected.
He also called on the Federal Government to continue working to strengthen the naira, arguing that exchange rate stability is a key factor in achieving cheaper fuel.
Although Dangote has maintained that the refinery’s pricing reflects current economic realities, a recent S&P Global report noted that its PMS prices remain relatively high, especially given recent declines in crude oil prices. As of press time, Dangote Refinery spokesperson Tony Chiejina had not responded to IPMAN’s comments.
