The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a reduction in petrol prices, urging Dangote Refinery to review its ex-depot price of ₦970 per litre. This follows reports that the cost of landing petrol in Nigeria has dropped to ₦900.28 per litre.
This appeal comes amid ongoing discussions about the Federal Government's naira-for-crude initiative, launched in October. Under the scheme, the Nigerian National Petroleum Company Limited (NNPCL) supplies 385,000 barrels of crude oil daily to the Dangote Refinery, with payments made in naira. However, challenges persist as Dangote Refinery has had to rely on imported crude to meet its production targets.
### **Naira-for-Crude Initiative Faces Hurdles**
While the initiative was expected to ease costs and stabilize fuel prices, industry players have highlighted gaps in crude supply. Dangote Industries’ Vice President, Devakumar Edwin, stated that the NNPCL has not consistently met its supply commitments, forcing the refinery to source crude from international markets.
Despite these challenges, IPMAN Publicity Officer, Chinedu Ukadike, expressed optimism, noting that pricing adjustments by the Dangote Refinery—from ₦990 to ₦970—indicate progress. However, he emphasized that foreign exchange rates and production costs remain critical factors affecting domestic fuel pricing.
Criticism of Fuel Pricing Policies
Civil society organizations and industry stakeholders have criticized the government and fuel marketers for failing to pass the benefits of local refining to consumers. Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), lamented that the removal of fuel subsidies has not translated into reduced prices for citizens despite the operation of local refineries.
Similarly, Debo Adeniran, President of the Coalition Against Corrupt Leaders, blamed a "fuel cabal" and international oil cartels for manipulating prices and stifling the potential benefits of locally refined petroleum products.
Calls for Reform and Accountability
Amid growing public dissatisfaction, stakeholders are urging the government to address inefficiencies in crude supply and refine policies to ensure that citizens benefit from Nigeria’s natural resources. IPMAN also commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for fostering competition and urged for sustained reforms to improve pricing and availability.
As the festive season approaches, marketers and advocacy groups stress the need for affordable and accessible fuel to alleviate the economic burden on Nigerians. With a meeting scheduled for January, all eyes remain on the Federal Government, Dangote Refinery, and other stakeholders to address these pressing issues.
