The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS), currently sold at around N825 per litre, citing favourable conditions that should support lower pricing.
Speaking to The PUNCH, IPMAN’s Publicity Secretary, Chinedu Ukadike, argued that since the refinery receives crude oil in naira, and operates locally, the cost of petrol should be lower—around N750–N780 per litre.
Ukadike was responding to recent comments by Aliko Dangote, President of the Dangote Group, who stated that Nigerians now pay only 55% of what other West African countries pay for petrol, thanks to the operations of his 650,000-barrel-per-day refinery.
While Ukadike acknowledged that petrol is cheaper in Nigeria than in neighbouring countries, he noted that this comparison is flawed, as many of those countries neither produce crude oil nor refine it using local currency.
“We are a crude oil-producing nation. With the naira-for-crude policy, forex-related costs have reduced. Nigerians should enjoy lower fuel prices,” Ukadike stated.
He commended the refinery for eliminating fuel scarcity and queues but insisted that prices could go lower if the naira strengthens.
“The refinery has solved the availability issue, but pricing is still high. If the exchange rate drops—for example, to N1,200/$—petrol could sell below N750 per litre.”
In contrast, Dangote has defended the current pricing. During a visit by ECOWAS leaders, he noted that neighbouring countries pay around $1 per litre (approximately N1,600), while his refinery sells petrol at N815–N820 per litre in Nigeria.
Dangote credited the federal government’s naira-for-crude oil deal for helping reduce fuel prices, and cited similar benefits from the crash in diesel prices—falling from N1,700 to N1,100 per litre after his refinery began production.
However, S&P Global recently reported that the refinery’s petrol prices remain high relative to the declining global crude oil prices.
As of the time of this report, Dangote Refinery’s spokesperson, Tony Chiejina, had not responded to IPMAN’s remarks.
