The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to further reduce the price of Premium Motor Spirit (PMS), currently being sold between N815 and N825 per litre, stating that the refinery has the advantage to offer the product at a lower rate.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, made this assertion in an interview on Monday, reacting to recent claims by Alhaji Aliko Dangote, President of the Dangote Group, that Nigerians are currently paying 55 per cent less for petrol compared to other West African countries.
Dangote had credited the pricing drop to the Federal Government's naira-for-crude policy, which allows his refinery to purchase crude oil using the local currency, eliminating foreign exchange complications. He made these remarks during visits by President Bola Tinubu and ECOWAS Commission President Dr. Omar Touray to the 650,000 bpd Lekki-based facility last week.
While Ukadike acknowledged the improvement in product availability since Dangote commenced operations, he insisted that the current pricing regime still falls short of what Nigerians should be paying.
“Yes, petrol is cheaper here than in other West African countries. But many of them neither produce crude oil nor refine locally,” he said.
“As a crude-producing nation where Dangote enjoys naira-for-crude supply, PMS should be selling for about N750 or lower.”
He emphasized that the gains of local refining should extend to lower prices at the pump, particularly as foreign exchange constraints have been reduced.
“What Dangote has solved is the scarcity problem. But for pricing, there’s still work to do. If the naira strengthens and stabilizes, PMS prices will naturally fall,” Ukadike stated.
Price Could Drop with Stronger Naira
Ukadike predicted that if the naira appreciates to N1,100 or N1,200 per dollar, the cost of petrol should drop to below N750 per litre.
“With improved forex rates and better macroeconomic stability, the ex-depot price from Dangote should not exceed N780. Nigerians deserve to enjoy the full benefits of local refining,” he added.
Dangote Defends Pricing Strategy
Meanwhile, Dangote has continued to defend the refinery's current pricing, noting that the price of petrol in neighbouring countries averages $1 per litre (around N1,600), compared to his N815–N820 rate.
“Many Nigerians don’t realize that they are currently paying just 55 per cent of what others in the region are paying,” Dangote said.
He highlighted that the refinery had already made significant impact by slashing diesel prices from N1,700 to N1,100, benefiting industries, agriculture, and mining sectors.
However, despite Dangote’s optimism, a recent S&P Global report noted that prices at the refinery remain high when compared with the fall in global crude oil prices, raising questions about the full cost-transparency of refined products.
As of the time of filing this report, Dangote Group's spokesperson, Tony Chiejina, had yet to respond to the comments by IPMAN.
