Fuel Price Crisis IPMAN Reveals What FG Must Do To Reduce Petrol Cost

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to intervene in the rising price of Premium Motor Spirit (PMS), popularly known as petrol, by engaging with local refiners to find a solution that could bring down pump prices.

IPMAN National President, Abubakar Maigandi, made the appeal amid a fresh increase in petrol prices, with the product reportedly selling for between ₦1,310 and ₦1,345 per litre in Abuja and neighbouring areas.

According to Bush Radio Academy, the latest price increase followed upward adjustments in gantry and ex-depot prices by the Dangote Petroleum Refinery and other depot operators.

Maigandi urged the Federal Government to broker an agreement with Dangote Refinery and other domestic refiners to reduce the cost of petrol and ease the burden on consumers.

He stressed that government intervention in the downstream petroleum sector should not necessarily be interpreted as a return to the former fuel subsidy regime.

“We are appealing to the Federal Government to broker a deal with Dangote Refinery to reduce fuel prices,” Maigandi said.

He added that the government should engage Nigerian refiners, arguing that such intervention could help lower petrol prices without reintroducing fuel subsidies.

Meanwhile, the Dangote Petroleum Refinery is reportedly considering restricting petrol sales to some licensed fuel importers amid concerns about the quality of imported products and the possibility of imported petrol being blended with locally refined fuel before distribution.

According to reports, the refinery is concerned that such blending could make it difficult for consumers and regulators to determine whether products originated from Dangote Refinery or were imported. The refinery is also reportedly worried that quality complaints involving blended products could affect its reputation.

The development comes amid continued petrol imports despite increased domestic refining capacity. Figures reportedly cited by the refinery indicated that imported petrol accounted for about 43 per cent of total petrol supply in July.

Under the proposed arrangement, Dangote Refinery may prioritise marketers that do not hold petrol import licences, while companies continuing to import products under the Federal Government-approved regime could potentially lose access to petrol supplied by the refinery.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had issued petrol import licences in May to six companies, with a combined allocation of 720,000 metric tonnes of PMS.

The companies reportedly include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy, with individual allocations ranging from 60,000 to 150,000 metric tonnes.

The reported developments have further intensified discussions around petrol pricing, domestic refining and the role of government in stabilising the downstream petroleum sector as consumers continue to face high fuel costs.