The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a reduction in petrol prices, urging the Dangote Refinery to lower its ex-depot price from ₦970 per litre. This appeal comes after the estimated landing cost of petrol in Nigeria dropped to ₦900.28 per litre.
The push for price reduction aligns with the Federal Government’s naira-for-crude initiative introduced by President Bola Tinubu. During a Federal Executive Council (FEC) meeting on July 29, Tinubu proposed the sale of crude oil to local refineries in naira, a policy adopted to strengthen local currency transactions.
Under the initiative, the Nigerian National Petroleum Company Limited (NNPCL) committed to supplying 385,000 barrels per day of crude to the Dangote Refinery, accounting for over 11.5 million barrels monthly. However, Dangote Refinery’s Vice President, Devakumar Edwin, revealed that NNPCL had failed to meet its delivery target, forcing the refinery to rely on imported crude to sustain operations and ramp up production capacity.
“We need 650,000 barrels per day. NNPCL agreed to deliver a minimum of 385,000 bpd but has not even met that target,” Edwin said, noting that the 650,000-barrel facility is also focused on exporting refined products to West African markets.
IPMAN’s Stance
IPMAN’s National Publicity Officer, Chinedu Ukadike, acknowledged that factors such as production costs, exchange rates, and demand-supply dynamics influence petrol pricing. He noted that while Dangote Refinery has reduced its ex-depot price from ₦990 to ₦970 per litre, further reductions are needed to foster healthy competition and ease consumer burdens.
“The naira recently gained value, and this should naturally impact domestic fuel prices,” Ukadike stated. He commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority for preventing monopolistic practices in the sector.
Concerns from Other Stakeholders
Despite the naira-for-crude initiative, petrol prices remain high, sparking criticism from various groups. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has ruled out importation for now, emphasizing reliance on local refineries. However, PETROAN’s National President, Billy Gillis-Harry, hinted that the association might revisit importation discussions in January if local production fails to meet demand.
Meanwhile, Debo Adeniran, National President of the Coalition Against Corrupt Leaders, blamed local and international oil cartels for inflated prices, stating, “Local cabals impose unofficial taxes and regulations on producers, making locally refined fuel more expensive than imports.”
Civil society groups have also condemned the high costs. Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), criticized the government for failing to provide relief to citizens despite local production.
“The government’s withdrawal of subsidies without cushioning measures shows disregard for citizens. Publicly owned refineries should offer fuel at affordable rates,” Rafsanjani argued.
Future Outlook
While the naira-for-crude initiative has addressed fuel scarcity, stakeholders believe its full benefits are yet to materialize. IPMAN and other groups maintain optimism that the deregulation of the petroleum sector will eventually stabilize pricing and alleviate consumer hardships, especially during the festive period.
