IPMAN Urges Federal Government to Cut Crude Oil Price for Dangote Refinery
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Federal Government to reduce the cost of crude oil supplied to the Dangote Petroleum Refinery in order to help bring down the soaring price of petrol across Nigeria.
According to IPMAN’s National President, Abubakar Garima, the move could significantly help reduce the price of Premium Motor Spirit (PMS), commonly known as petrol, which has recently surged above ₦1,000 per litre in several states.
Garima made the appeal amid growing concerns about rising fuel prices and the broader economic impact on households and businesses nationwide.
In an interview, he explained that the sharp increase in petrol prices is largely tied to fluctuations in global crude oil markets. He noted that geopolitical tensions, particularly conflicts involving the United States, Israel, and Iran in the Middle East, have contributed to rising crude oil prices globally.
These developments, he said, have made it more difficult for refineries to obtain crude oil at affordable rates, thereby pushing up the cost of refining and ultimately the retail price of petrol.
Garima argued that government intervention in the pricing of crude oil supplied to domestic refineries could help stabilise the market.
According to him, crude oil supplied to the Dangote Refinery should be offered at more favourable terms rather than being strictly tied to international market prices.
“Government support for domestic refining could help moderate prices,” Garima said, adding that a reduction in crude supply costs would enable the refinery to lower its ex-gantry price.
Related News
IEA Announces Record Release of 400 Million Barrels of Oil to Stabilize Markets Amid Iran War
The International Energy Agency (IEA) has announced the largest emergency oil release in its history, unlocking 400 million barrels from…
Petrol Price Could Reach ₦2,000 Per Litre If Middle East Conflict Persists – PETROAN
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices in Nigeria could surge to…
NNPC Raises Petrol Pump Price to ₦933 Per Litre in Lagos, ₦960 in Abuja
The Nigerian National Petroleum Company Limited has increased the pump price of petrol at its retail stations to ₦933 per…
The ex-gantry price refers to the cost at which refined fuel is sold to marketers directly from the refinery before transportation and other logistics costs are added.
If the refinery is able to reduce its ex-gantry price, Garima explained, independent marketers would be able to purchase petrol at lower rates and sell it more cheaply to consumers at filling stations.
Currently, fuel prices have reached extremely high levels across the country. Reports indicate that petrol now sells for between ₦1,070 and ₦1,100 per litre in several northern states, while prices range from about ₦1,030 to ₦1,050 per litre in parts of southwestern Nigeria.
Depot prices for marketers have also risen sharply, with wholesale prices reportedly ranging between ₦1,000 and ₦1,010 per litre before transportation and distribution costs are added.
Industry observers say the situation worsened after the Dangote Refinery recently increased its gantry price by ₦221 within a four-day period, raising the price from ₦874 per litre to about ₦995 per litre.
The sudden price adjustment contributed to retail petrol prices exceeding ₦1,050 per litre nationwide and triggered supply pressures in some areas, including parts of Lagos and Ogun State.
Energy analysts say supporting domestic refining capacity could help Nigeria achieve greater energy security and reduce dependence on imported petroleum products.
The Dangote Refinery, widely regarded as the largest refinery in Africa, is expected to play a critical role in stabilising Nigeria’s fuel market once its operations reach full capacity.
Experts note that offering discounted or preferential crude oil supply to the refinery could lower production costs and ultimately ease the burden of high fuel prices on Nigerians.
However, such a policy decision would also require careful balancing by the government to avoid distorting the market while ensuring that local refining operations remain competitive.
As fuel prices continue to climb and inflationary pressures mount, industry stakeholders are increasingly calling for policy measures that could stabilise energy prices and protect consumers from further economic hardship.