The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Dangote Petroleum Refinery to reduce the ex-depot price of Premium Motor Spirit (PMS), arguing that current conditions support a more affordable pump price for Nigerians.
In an interview with journalists, IPMAN’s National Publicity Secretary, Chinedu Ukadike, stated that while the refinery had significantly improved fuel availability and reduced dependence on imports, the price of petrol—currently at about N825 per litre—remains too high, especially considering Nigeria's status as a crude-producing nation and the federal government’s naira-for-crude policy.
Ukadike’s comments come in response to recent statements by Aliko Dangote, President of the Dangote Group, who credited his 650,000 barrels-per-day Lekki-based refinery with stabilising fuel supply and lowering fuel prices to about 55% of what consumers in other West African countries pay. Dangote noted that local refining had shielded Nigerians from the worst effects of global fuel price volatility, citing prices of N815 to N820 per litre at the refinery compared to N1,600 in neighbouring nations.
However, while acknowledging the impact on availability, IPMAN insists that Nigerian consumers deserve lower prices, given the enabling environment provided to the refinery. “Those African countries Dangote was comparing us with are not crude oil-producing countries,” Ukadike argued. “We are. 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 exchange costs are no more there—we should also enjoy it as Nigerians.”
Ukadike estimated that petrol prices could reasonably fall to between N750 and N780 per litre, citing production and logistics cost analyses. He emphasized that the exchange rate remains a major factor keeping prices high, adding that a stronger naira would directly translate to cheaper fuel. “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 said.
He stressed that while the Dangote Refinery has solved the issue of scarcity, affordability remains a challenge. “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.”
Ukadike’s remarks also touch on wider public sentiment, with many Nigerians questioning why petrol remains relatively expensive despite the commissioning of one of Africa’s largest refineries and the shift to local refining in domestic currency. A recent report by S&P Global added further context, indicating that the Dangote Refinery’s fuel prices remain elevated relative to the global decline in crude oil prices.
Speaking recently to ECOWAS officials and President Bola Tinubu, Dangote reiterated that local refining has brought long-term benefits, including reduced costs across multiple sectors such as agriculture, mining, and manufacturing. He also pointed out the dramatic price drop in diesel since the start of local production—from N1,700 to N1,100 per litre.
Despite these achievements, calls for price adjustments are growing louder. As Nigeria grapples with a volatile exchange rate and inflationary pressures, public expectations are rising for the refinery to reflect its operational advantages in the final pump price.
At the time of reporting, Dangote Refinery spokesperson Tony Chiejina had not responded to IPMAN’s comments. However, the ongoing debate underscores the complex interplay between local production, currency policies, and consumer pricing in Nigeria’s evolving energy landscape.