Fuel Price War: IPMAN Challenges Dangote Over Sky-High Petrol Rates

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on Dangote Petroleum Refinery to slash the price of Premium Motor Spirit (PMS), arguing that the current retail price of ₦825 per litre is too steep for the average Nigerian.....KINDLY READ THE FULL STORY HERE▶

In an interview with The PUNCH, Chinedu Ukadike, IPMAN’s National Publicity Secretary, maintained that given the preferential terms Dangote Refinery enjoys—especially the naira-for-crude oil agreement—petrol should not be priced above ₦750 per litre.

Ukadike’s comments come on the heels of recent remarks by Aliko Dangote, President of the Dangote Group, who stated during a meeting with ECOWAS officials and President Bola Tinubu that Nigerians are currently paying only 55% of what their counterparts in other West African nations pay for fuel.

While Ukadike acknowledged that petrol is cheaper in Nigeria, he argued that it should be significantly lower, especially since Nigeria is a crude oil-producing country, unlike many of the countries used for comparison.

“Yes, petrol is cheaper here. But those countries don’t produce crude oil. Nigeria does. And now that the President has allowed Dangote to purchase crude in naira, most foreign exchange constraints have been eliminated. Nigerians should benefit from this,” Ukadike said.

Fuel Scarcity Resolved, But Affordability Still a Concern

Ukadike praised Dangote’s efforts in addressing fuel availability but stressed that pricing remains a major concern for ordinary Nigerians.

“Dangote has solved the problem of availability, no doubt. But price-wise, there’s still work to do. If the government can strengthen the naira and reduce the exchange rate to around ₦1,200/$, petrol prices could fall below ₦750/litre,” he added.

When asked if the current pricing was acceptable, Ukadike said:

“To me, ₦825 is not cheap. Based on what I understand about refining and distribution costs, PMS should retail for around ₦750 to ₦780 per litre.”

Dangote Defends Pricing Strategy

In response, Aliko Dangote defended the current petrol price, stating that his refinery sells PMS at ₦815–₦820 per litre, which he claims is significantly lower than the ₦1,600/litre average in neighbouring West African nations.

“Nigerians don’t realise that they’re paying only 55% of what other regional consumers pay. Local refining is helping to stabilise prices,” he said.

Diesel Prices Drop, Sectoral Impact Grows

Dangote also highlighted how his refinery’s production had driven down diesel prices from ₦1,700 to ₦1,100 and below, positively impacting industry, mining, and agriculture.

Despite these improvements, a recent S&P Global report noted that fuel prices from the refinery remain relatively high, especially in light of the recent global drop in crude oil prices.

As of the time of reporting, Dangote Refinery’s spokesperson, Tony Chiejina, had not yet responded to IPMAN’s demands.