The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Dangote Petroleum Refinery to reduce the price of petrol, suggesting it should sell for less than the current N825 per litre rate.
Speaking to PUNCH news, IPMAN’s Publicity Secretary, Chinedu Ukadike, said that the refinery has enough local advantages to sell petrol at a lower price. Ukadike’s comments came after Dangote Group’s President, Aliko Dangote, claimed Nigerians now pay about 55 percent less than other West African countries for petrol due to the refinery’s efforts.
“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.
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.
Responding to these concerns, Dangote had earlier stated that petrol is currently being sold between N815 and N820 per litre at the refinery. He defended the pricing, noting that Nigerians are paying far less than citizens in neighboring countries, where petrol prices average around N1,600 per litre.
He said during a visit by ECOWAS Commission President Dr. Omar Touray that his refinery has helped cut down costs across many sectors. “Last year, when we began diesel production, we were able to reduce the price from N1,700 to N1,100 at a go,” he said, noting the impact on agriculture, mining, and industry.
