The Independent Petroleum Marketers Association of Nigeria (IPMAN) is urging a reduction in petrol prices across the country. The group is asking Dangote Refinery to consider lowering its ex-depot price from N970 per litre, pointing out that the cost of landing petrol in Nigeria has dropped to N900.28 per litre.
This comes after President Bola Tinubu’s proposal in July to sell crude oil to local refineries in naira, which was approved by the Federal Executive Council (FEC). As part of the plan, NNPC agreed to supply Dangote Refinery with 385,000 barrels of crude oil per day, with payments made in naira.
Although there’s been little information on the exact volume of crude traded, sources close to the deal say it’s still moving forward. According to a Dangote Industries executive, however, the refinery hasn’t received the full amount of crude promised, which has impacted its ability to ramp up production.
Chinedu Ukadike, IPMAN’s National Publicity Officer, pointed out that while the refinery continues to import some crude, the government needs to do more to encourage healthy competition and lower fuel prices. He also praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for preventing monopolies in the sector, which has helped keep prices competitive.
On the other hand, civil society groups are frustrated by the high cost of petrol, despite the local refining initiative. Debo Adeniran, president of the Coalition Against Corrupt Leaders, and Auwal Rafsanjani, Executive Director of CISLAC, argue that the government should be doing more to ensure that locally produced fuel leads to lower prices for ordinary Nigerians.
In response, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said that they won’t start importing fuel again unless local refineries fail to meet their needs. They have committed to supporting the president’s directive to avoid importing, even though imports are often cheaper for them.
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