Amid growing concerns over the cost of Premium Motor Spirit (PMS), also known as petrol, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce its pump price to below N800 per litre.
Currently, petrol is being sold at between N815 and N825 per litre from the Dangote Refinery, Nigeria’s first privately owned mega-refinery situated in Lekki, Lagos. While this pricing has been hailed by the refinery’s owner, Aliko Dangote, as significantly lower than what is obtainable across West African nations, IPMAN disagrees on the basis of local economic realities.
Speaking exclusively with ireport247news.com IPMAN’s National Publicity Secretary, Chinedu Ukadike, argued that despite the refinery’s contributions to fuel availability, its pricing remains higher than what Nigerians ought to pay—given the country’s status as a crude oil-producing nation and the local crude-for-naira supply policy introduced by the Federal Government.
“Those countries Dangote is comparing Nigeria with don’t produce crude oil, nor do they refine in their own currencies,” Ukadike said. “Nigeria is different. We have local crude, and the government gives him crude in naira. So, we should be seeing fuel sold at around N750 to N780 per litre, not N825.”
Aliko Dangote, during recent engagements with ECOWAS officials and President Bola Tinubu, highlighted the role of his refinery in improving the local fuel supply and stabilizing prices. He emphasized that most Nigerians now pay only about 55% of what their West African neighbors spend on petrol.
“At our refinery, we sell petrol between N815 and N820. In neighbouring countries, the price is around N1,600 per litre. Nigerians are benefiting significantly,” Dangote told his guests during a tour of the 650,000 barrels-per-day facility.
The business mogul also reiterated that the naira-for-crude policy—where crude is supplied in local currency rather than dollars—has significantly cut down on operational costs and reduced the burden of foreign exchange volatility on fuel pricing.
However, Ukadike insists that while availability has improved, pricing must still reflect local economic advantages. “What Dangote has succeeded in doing is eliminating fuel scarcity and long queues at petrol stations. For that, he deserves credit. But the price is still not where it should be,” he stressed.
According to IPMAN’s assessment, if the naira strengthens to about N1,100 to the dollar, petrol prices could fall below N750 per litre. As of now, with the naira trading around N1,600/$1, Ukadike believes the price is still artificially high, considering the domestic nature of both crude supply and refining.
“Most of the forex-related costs are no longer there,” he explained. “If you factor in local refining, naira payments for crude, and proximity to supply chains, then the product shouldn’t exceed N780 per litre.”
IPMAN has called on the Federal Government to intensify efforts at stabilizing the naira and addressing macroeconomic pressures that continue to inflate local energy costs.
“The onus is now on government to support refineries and the wider economy by strengthening the naira. That will automatically bring down petrol and diesel prices,” Ukadike noted.
Analysts also agree that foreign exchange volatility remains one of the most critical challenges facing Nigeria’s downstream sector. Despite the efforts of Dangote and modular refiners, imported inputs, logistics, and currency instability continue to weigh on final product pricing.
Meanwhile, a recent analysis by international rating agency S&P Global suggested that the Dangote refinery’s pricing remains relatively high compared to falling global crude prices. The report hinted that further reductions could be achieved through improved local efficiencies and macroeconomic stability.
As of press time, the spokesperson for Dangote Refinery, Tony Chiejina, had yet to respond to IPMAN’s call for a review of the refinery’s pricing model.
While the launch of Dangote Refinery marked a turning point in Nigeria’s fuel supply chain, the debate over pricing underscores the complexity of balancing business sustainability with consumer affordability in a fragile economic climate.
As expectations rise for further relief at the pump, all eyes remain on both the Federal Government’s exchange rate policy and the refinery’s pricing strategy in the months ahead.