IPMAN Urges Dangote Refinery to Reduce Petrol Price Below N800/Litre

 

Firstsitenews-The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to review its petrol pricing and sell at a rate below the current N825 per litre. According to IPMAN, the refinery has enough cost advantages to offer Nigerians cheaper fuel.

Chinedu Ukadike, IPMAN’s National Publicity Secretary, made this known in an interview, stressing that the plant’s access to crude oil in naira and its strategic domestic location should significantly lower production and distribution costs.

Ukadike was responding to recent comments by the President of Dangote Group, Aliko Dangote, who claimed that fuel prices in Nigeria are 55% lower than those paid by citizens in other West African countries, thanks to the operations of his refinery. Dangote had also commended the Federal Government’s naira-for-crude policy, stating that it helped stabilize prices.

While Ukadike acknowledged that Nigerian fuel is cheaper than in neighbouring countries, he argued that the comparison is flawed, given that many of those countries neither produce crude oil nor refine it locally in their currencies.

“I agree that petrol is cheaper here compared to other West African countries. However, as a crude oil-producing nation, we should be enjoying even lower prices — especially now that the government is supplying crude in naira, eliminating many foreign exchange costs,” he said.

He praised Dangote for solving the problem of fuel availability, saying that queues at filling stations have largely disappeared. However, he maintained that the price still has room to drop if the naira strengthens.

“What we have gained so far is fuel availability. When the naira becomes stronger and more stable, the price of petrol will naturally come down. Exchange rate remains a key factor in determining the final price of petroleum products,” Ukadike explained.

When asked if the current petrol price from Dangote was reasonable, he said, “I don’t think it’s cheap enough considering the advantages the refinery enjoys. Based on my calculations, the price should be around N750 to N780 per litre, given current production and depot landing costs.”

He concluded that if the naira appreciates to around N1,100 to the dollar, petrol should ideally sell below N750 per litre.

Ukadike's remarks add to ongoing conversations around fuel pricing in Nigeria, especially as the Dangote refinery begins full-scale operations expected to reshape the country's petroleum supply landscape.