The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for the Dangote Petroleum Refinery to lower its petrol prices below the current rate of N825 per litre. Chinedu Udadike, IPMAN’s Publicity Secretary, stated that the refinery possesses the necessary capacity to offer petrol at a more competitive price.
Udadike’s comments came in response to remarks made by Aliko Dangote, President of the Dangote Group, who highlighted that the refinery has contributed to the decline in fuel prices, allowing Nigerians to pay about 55% of what consumers in other West African countries pay for petrol.
While acknowledging that petrol prices are cheaper in Nigeria, Udadike argued that prices should ideally be around N750 per litre. He pointed out that many of the countries with higher prices do not produce crude oil or have local refineries.
He noted, “We are a crude oil-producing nation. Since the government has agreed to sell crude in naira, we should benefit from reduced foreign exchange costs.” Udadike praised the refinery for alleviating fuel scarcity, which previously led to long queues at gas stations.
Udadike emphasized that the price of petrol could decrease further if the government takes steps to strengthen the naira. “Once the naira stabilizes against the dollar, we will see a drop in prices,” he added. He estimated that if the naira appreciated to N1,100 per dollar, petrol could be sold for less than N750 per litre.
During a recent visit by ECOWAS officials, Dangote reiterated that his refinery has helped reduce fuel prices, stating that petrol is currently sold between N815 and N820 per litre. He explained that many Nigerians are unaware of how much they are saving compared to prices in neighboring countries, which average around $1 per litre.
Dangote also mentioned the positive impact of the naira-for-crude policy, which has helped maintain lower prices. However, a report by S&P Global indicated that the refinery’s fuel prices remain high in comparison to falling crude prices.
As of now, the spokesperson for the refinery, Tony Chiejina, has not commented on IPMAN’s statements.
