IPMAN urges the Federal Government to cut crude oil costs for Dangote Refinery as petrol prices exceed ₦1,000 per litre across Nigeria.
Nigeria’s rising petrol prices have triggered fresh concerns within the petroleum sector, prompting the Independent Petroleum Marketers Association of Nigeria (IPMAN) to call on the Federal Government to intervene by lowering the cost of crude oil supplied to the Dangote Petroleum Refinery.
The National President of IPMAN, Abubakar Garima, made the appeal while speaking in an interview with Nairametrics, noting that reducing the price of crude oil for domestic refining could help stabilize the cost of Premium Motor Spirit (PMS), popularly known as petrol.
According to Garima, petrol prices have climbed above ₦1,000 per litre in several parts of the country, placing additional pressure on businesses and households already grappling with rising living costs.
He explained that the recent surge in fuel prices is largely driven by fluctuations in the global oil market, which have been worsened by geopolitical tensions in the Middle East. The ongoing conflicts involving the United States, Israel, and Iran have pushed international crude oil prices upward, making it more expensive for local refineries to secure feedstock.
Garima emphasized that offering crude oil to the Dangote Petroleum Refinery at more favorable terms rather than strictly at international market rates could significantly reduce production costs.
He said such a policy would allow the refinery to lower its ex-gantry price, enabling independent marketers to sell petrol at more affordable rates and ease pressure on consumers.
Reports indicate that petrol pump prices have risen to between ₦1,070 and ₦1,100 per litre in northern states, while motorists in parts of the South-West now pay between ₦1,030 and ₦1,050 per litre.
Independent marketers are also facing higher depot prices, which currently range between ₦1,000 and ₦1,010 per litre, excluding transportation and logistics expenses that further increase the final pump price.
The sharp increase followed a recent adjustment by the Dangote Refinery, which raised its gantry price by ₦221 within four days, moving from ₦874 per litre to ₦995 per litre. The development has contributed to pump prices exceeding ₦1,050 nationwide and has reportedly triggered supply disruptions in areas such as Lagos and Ogun states.
Industry analysts believe that providing crude oil to the refinery at discounted or subsidized rates could help strengthen Nigeria’s domestic refining capacity. They argue that supporting the Dangote Refinery, widely regarded as the largest refinery in Africa, would reduce dependence on imported petroleum products and help cushion the impact of rising fuel prices on Nigerians.
ALSO READ: 2027: Former Abia Speaker Backs Tinubu’s Re-election, Announces Senate Bid
As fuel costs continue to rise, stakeholders across the oil and gas sector are urging policymakers to consider strategies that will encourage local refining while protecting consumers from persistent price shocks.