IPMAN: Dangote Refinery should sell petrol below N800/Litre


IPMAN: Dangote Refinery Should Sell Petrol Below N800/Litre



The Independent Petroleum Marketers Association of Nigeria (IPMAN) believes that the Dangote Petroleum Refinery should reduce the price of petrol (Premium Motor Spirit) below the current N825 per litre rate.

IPMAN’s Publicity Secretary, Chinedu Ukadike, in an interview, said the refinery has the right conditions to offer lower prices, especially considering the naira-for-crude oil policy introduced by the Federal Government. This initiative allows Dangote to buy crude oil in naira, which should cut out the foreign exchange burden tied to pricing.

Ukadike acknowledged Dangote Group President Aliko Dangote’s claim that Nigerians currently pay about 55% less for petrol compared to citizens in other West African nations. However, he argued that since Nigeria produces its own crude oil and the refinery operates in local currency, petrol should retail for around N750 per litre.

He pointed out that many countries Dangote referenced do not have their own crude or local refining capabilities, which justifies higher prices there. But for Nigeria, he insisted, local refining and favourable government policies should lead to more affordable fuel.

While commending Dangote for solving the issue of fuel availability and eliminating long queues at filling stations, Ukadike emphasized that the government must stabilize the naira to achieve lower fuel prices. He estimated that if the naira strengthened to around N1,100–N1,200 per dollar, petrol could be priced below N750 per litre.

Responding to questions on whether Dangote's pricing was justified, Ukadike said that, despite the enabling environment and support given to the refinery, petrol prices could still drop. Based on cost analysis — including production and depot landing costs — he suggested a more reasonable price would be between N750 and N780.

Meanwhile, Dangote, during visits from ECOWAS officials and President Bola Tinubu, reiterated that his refinery had helped drive down fuel prices and that Nigerians were benefiting from local refining. He cited diesel prices as an example, which fell from N1,700 to N1,100 due to domestic production. He also emphasized that petrol from his refinery was currently selling between N815 and N820 per litre, much lower than the average N1,600 price in neighbouring countries.

Despite these claims, a recent report by S&P Global noted that the refinery's fuel prices remain relatively high, especially when compared with the recent drop in global crude oil prices.

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