The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS), commonly known as petrol, below its current rate of N825 per litre.
Speaking to The Punch, IPMAN’s National Publicity Secretary, Chinedu Ukadike, argued that the refinery possesses the operational advantages to offer a lower ex-depot price for petrol.
He maintained that these factors—such as local crude sourcing and in country refining should translate to more affordable pump prices for Nigerian consumers.
Ukadike was responding to a recent comment by Dangote Group President, Aliko Dangote, who claimed that petrol prices in Nigeria have fallen significantly due to the refinery’s operations.
Dangote said Nigerians currently pay around 55 per cent less than citizens in many other West African nations.
The industrialist also credited the Federal Government’s naira-for-crude oil exchange policy for helping to reduce the cost of refined products in the country.
While Ukadike acknowledged that Nigeria’s petrol prices are lower than in other parts of West Africa, he insisted that the product should retail for even less suggesting a benchmark of around N750 per litre.
He pointed out that many neighbouring countries neither produce crude oil nor refine it using their local currencies, unlike Nigeria.
“I agree that petrol is cheaper in Nigeria than in other West African countries. Notwithstanding, those African countries Dangote was comparing us with are not crude oil-producing countries.
“We’re a crude oil-producing state. PMS should be far lower as the President has also decided to give him crude in naira. So, most of the foreign exchange brouhaha and the exchange costs (are no more there), we should also enjoy it as Nigerians,” he said.
Read Also: Again, Dangote refinery reduces petrol prices nationwide
Ukadike said what Dangote had conquered for Nigerians was the issue of fuel scarcity, which used to cause queues at filling stations. He called on the Federal Government to strengthen the naira to make fuel more affordable.
“What I believe he (Dangote) has conquered for Nigerians is availability. On price, we’ll still get there. Once the government works very hard to ensure that the rate of naira to the dollar is reduced and the strength of our naira is stable, you’ll find out that the price will go down. This is another factor that determines the price of petroleum products,” he noted.
Asked if he meant that Dangote’s petrol was not cheap enough, he replied, “Well, I’m not saying it’s cheap enough in line with the facilities, amenities and the enabling environment that have been given to him.
“For me, I don’t feel it’s cheap. I think the petrol will go as low as around N770. That’s my own permutation. I’m not an expert in oil refining. But with what I have gathered — the refinery production costs and the landing at the depot cost — petrol should not be more than N780, N750, in line with the dollar rate.
“So, if the Federal Government can ensure that we continue to strengthen the naira, I believe that the price of petroleum products will go down further. What is keeping it up now is the exchange rate,” he posited.
The independent marketer predicted that if the naira appreciated to N1,100 against the dollar, petrol should be sold below N750 per litre.
“I don’t know how much the dollar will go down, so I cannot forecast. The dollar is around N1,600 now. So, if the dollar can come down to N1,200, I want to tell you that the price of PMS at the pumps will go below N750,” he added.
 has called on the Dangote Petroleum Refinery to reduce the price of Premium Motor Spirit (PMS), commonly known as petrol, below its current rate of N825 per litre.){kind=link}