The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the current ex-depot price of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery, stating that the N825 per litre rate is not reflective of the economic advantages provided to the facility, particularly the naira-for-crude policy introduced by the Federal Government.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, made the position known in an interview, where he noted that while the availability of petrol has improved, the pricing remains above what Nigerians should be paying considering local refining advantages and currency alignment policies.
“While we commend the Dangote Refinery for ending fuel scarcity and improving availability, the current ex-depot price of N825 per litre is not competitive enough,” Ukadike said. “We believe that with the incentives provided by the Federal Government, including the supply of crude oil in naira, the retail price should be closer to N750.”
He noted that most of the foreign exchange burdens traditionally associated with importing refined products have been eliminated by the government’s decision to supply crude oil in local currency, thereby removing forex-driven cost pressures that previously inflated pump prices.
Ukadike’s comments come in response to recent statements by the President of Dangote Group, Aliko Dangote, who asserted that Nigerians are paying about 55% less for petrol than citizens in other West African countries, a development he attributed to the operational capacity of the 650,000 barrels-per-day Lekki-based facility.
“Other West African countries don’t produce crude oil and don’t refine in their local currencies,” Ukadike said. “Nigeria is a crude-producing nation, and with the naira-crude arrangement, we expect those comparative advantages to translate into lower retail prices for the domestic market.”
He added that the reduction of fuel queues and scarcity is a significant achievement of the refinery, but emphasized that pricing remains a core concern for downstream operators and final consumers.
“The facility has solved the supply issue, but pricing still needs to reflect the economic benefits Nigerians should enjoy from local refining,” Ukadike noted.
Dangote, during a recent visit by ECOWAS Commission President Dr. Omar Touray and Nigerian President Bola Tinubu, stated that petrol is currently sold between N815 and N820 per litre, substantially lower than the N1,600 per litre average in neighboring countries. He reiterated that the naira-for-crude model had supported consistent price reductions.
However, industry stakeholders argue that the reduction has not gone far enough.
Ukadike also pointed to exchange rate dynamics as a key determinant of local fuel pricing. “If the naira strengthens to around N1,100 per dollar, PMS prices should drop below N750. Even at N1,200 to the dollar, prices at the pump could be significantly lower,” he said.
The Federal Government has yet to respond to calls for further review of the pricing framework, particularly in light of the strategic supply arrangement with the refinery.
Analysts say the Dangote Refinery’s pricing model will remain under scrutiny as long as forex costs ease and local production continues. While the refinery has helped stabilize supply, the market expectation is for prices to adjust downward as macroeconomic conditions improve.
A recent report by S&P Global highlighted concerns that the refinery’s pump prices remain high despite falling crude prices globally, raising additional questions about cost-pass-through and pricing efficiency.
The Dangote Refinery, which began producing diesel and aviation fuel earlier this year, has positioned itself as a critical player in the region’s energy market. It continues to receive government support and is being counted on to deliver long-term energy stability and cost competitiveness for Nigeria.
