The Independent Petroleum Marketers Association of Nigeria 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.
IPMAN Publicity Secretary, Chinedu Udadike, recently stated that the refinery had the necessary enabling factors to sell petrol below its current ex-depot price.
Ukadike was reacting to a comment by the President of the Dangote Group, Aliko Dangote, that the refinery contributed to the consistent drop in fuel prices to a level that Nigerians pay about 55 per cent of what other West African citizens pay for petrol.
Also recently, Dangote told ECOWAS officials and President Bola Tinubu that the naira-for-crude policy of the Federal Government had positively impacted the pricing of refined petroleum products. Though Ukadike agreed that the current petrol price was cheaper than what other West African states paid, he said the product should be far cheaper in Nigeria, selling for about N750.
According to him, many of these West African countries do not produce crude oil, nor do they have refineries that process crude 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 there), we should also enjoy it as Nigerians,” he said.
“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.
He also explained that he didn't think the price is low “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, 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.
The independent marketer predicted that if the naira appreciated to N1,100 against the dollar, petrol should be sold below N750 per litre.
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