The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said the Dangote Petroleum Refinery should sell Premium Motor Spirit (petrol) below the current N825 per litre price being sold by the Lekki-based plant.
Speaking during an interview, IPMAN Publicity Secretary Chinedu Udadike indicated that the refinery possessed the required enabling components to sell petrol at a lower price than the present ex-depot.
Ukadike was responding to a claim made by Aliko Dangote, President of the Dangote Group, saying the refinery contributed to the continual decline in fuel prices to the point where Nigerians pay roughly 55% of what other West Africans pay for petrol.
Dangote recently told ECOWAS officials and President Bola Tinubu that the Federal Government’s naira-for-crude strategy had a favourable impact on the price of refined petroleum products.
Though Ukadike acknowledged that the present petrol price was lower than in other West African countries, he believed the product could be much cheaper in Nigeria, selling for around N750.
According to him, several of these West African countries do not produce crude oil or have refineries that process it in local currencies.
“I agree that petrol is cheaper in Nigeria than in other West African countries. Notwithstanding, those African countries Dangote was comparing us with are not crude oil-producing countries.
“We’re a crude oil-producing state. 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 the exchange costs are no more; we should also enjoy it as Nigerians,” he said.
Ukadike stated that what Dangote had conquered for Nigerians was the issue of fuel scarcity, which used to cause queues at filling stations. He called on the federal government to strengthen the naira to make fuel more affordable.
“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. This is another factor that determines the price of petroleum products,” he noted.
Speaking on if he meant that Dangote’s petrol was not cheap enough, he replied, “Well, I’m not saying it’s cheap enough in line with the facilities, amenities and the enabling environment that have been given to him.
“For me, I don’t feel it’s cheap. I think the petrol will go as low as around N770. That’s my own permutation. I’m not an expert in oil refining. But with what I have gathered — the refinery production costs and the landing at the depot cost — petrol should not be more than N780 or N750, in line with the dollar rate.
“So, if the federal government can ensure that we continue to strengthen the naira, I believe that the price of petroleum products will go down further. What is keeping it up now is the exchange rate,” he posited.
IPMAN predicted that if the naira appreciated to N1,100 against the dollar, petrol should be sold below N750 per litre.
“I don’t know how much the dollar will go down, so I cannot forecast. The dollar is around N1,600 now. So, 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 added.
