*The Independent Petroleum Marketers Association of Nigeria justifies reason the Dangote Petroleum Refinery should sell Premium Motor Spirit, also known as petrol, at about N750 per litre, a price is below the current N825 per litre price, which the Refinery sells petroleum products to retailers at the gantry in Lagos

Isola Moses | 绿帽献妻

Contrary to Aliko Dangote’s recent comparative analysis of prices of petroleum prices across the subregion, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Dangote Petroleum Refinery to sell Premium Motor Spirit (PMS), otherwise known as petrol at about N750 per litre.

绿帽献妻 reports the fuel marketers’ projected price is below the current N825 per litre price, at which the Refinery sells its refined product to retailers at the gantry at Ibeju-Lekki, in Lagos.

Aliko Dangote, President/CE of Dangote Industries Limited

Chinedu Udadike, Publicity Secretary of IPMAN, in a recent interview, however, countered Dangote’s claim on retail price comparisons between Nigeria and other economies within the subregion.

Ukadike stated that the Dangote Petroleum Refinery has the necessary enabling factors to sell petrol below its current ex-depot price of N825/litre.

The Publicity Secretary of IPMAN though acknowledged that the Dangote Refinery has聽 contributed to the consistent drop in fuel prices, but not to a level that Nigerian consumers pay about 55 percent of what other West African citizens pay for petrol as the President/CE claimed.

Dangote affirms benefits of Naira-for-Crude policy

Dangote, President/CE of Dangote Industries Limited, recently told visiting top officials of the Economic Community of West African States (ECOWAS) and President Bola Ahmed Tinubu, that the Nigerian Government’s Naira-for-Crude policy has positively impacted the pricing of refined petroleum products in Nigeria.

Speaking during the ECOWAS leaders’ recent visit to the Dangote Refinery, led by Dr. Omar Touray, in Lagos, Dangote reportedly said most Nigerian consumers were unaware that they were paying 55 percent of what other West African countries pay for petrol.

The foremost industrialist and Africa’s richest man said his refinery had assisted the West African country in slashing fuel prices by selling petrol between N815 and N820 per litre.

The billionaire businessman stated this during a visit to the 650,000 barrels-per-day facility by the President of the Economic Community of West African States Commission, Dr. Omar Touray, and his team.

Noting that Africa would benefit greatly by encouraging trade among its countries.

Moreover, as Ukadike has agreed that the current petrol price is cheaper than what other West African states pay, he yet maintained that the cost of PMS should be far cheaper in Nigeria, selling for about N750.

The IPMAN top official further argued that several West African countries Dangote referenced do not produce crude oil, nor do they have refineries that process crude in local currencies.

Key reasons PMS price should be cheaper in Nigeria, by Ukadike

Ukadike, Publicity Secretary of IPMAN, said: 鈥淚 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.”

The Publicity Secretary asserted: 鈥淲e鈥檙e 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.”

Besides, he stated that what Dangote has resolved for Nigerian energy consumers was the issue of fuel scarcity, which used to cause queues at filling stations.

IPMAN, therefore, urged the Federal Government to strengthen the Naira to make fuel more affordable.

He averred: 鈥淲hat I believe he (Dangote) has conquered for Nigerians is availability. On price, we鈥檒l 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鈥檒l find out that the price will go down. “This is another factor that determines the price of petroleum products.”

As regards whether Dangote鈥檚 petrol price is not cheap enough and affordable for millions of Nigerian energy consumers, Ukadike said:聽 鈥淲ell, I鈥檓 not saying it鈥檚 cheap enough in line with the facilities, amenities and the enabling environment that have been given to him.

鈥淔or me, I don鈥檛 feel it鈥檚 cheap. I think the petrol will go as low as around N770.

“That鈥檚 my own permutation. I鈥檓 not an expert in oil-refining.”

According to him, and based on the market research, Dangote Petroleum Refinery’s production costs, and the landing at the depot cost of petrol should not be more than N780, N750, in line with the Dollar rate.

The IPMAN Csrive posited: 鈥淪o, 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.”

Still, the independent petroleum marketers predicted that if the Naira appreciated to N1,100 against the US Dollar, petrol should be sold below N750 per litre to consumers.

Ukadike noted: 鈥淚 don鈥檛 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.”

Speaking while receiving the ECOWAS delegation at the oil-refining plant in Lagos, Dangote had told related: 鈥淟ast year, when we began diesel production, we were able to reduce the price from N1,700 to N1,100 at a go, and as of today, the price has crashed further.

“This reduction has made a significant impact across various sectors.

“It has supported industries, benefited those of us in mining, and provided vital relief to the agricultural sector. The effect has been far-reaching.”

He equally told the leaders: 鈥淚n neighbouring countries, the average price of petrol is around $1 per litre, which is N1,600.

“But here at our refinery, we鈥檙e selling at between N815 and N820.

“Many Nigerians don鈥檛 realise that they are currently paying just 55 percent of what others in the region are paying for petrol.”

During President Tinubu鈥檚 visit to the oil refinery Thursday, June 6, Dangote was also quoted to affirmed that the Naira-for-Crude deal with the government has assisted him in cutting petrol prices consistently.

A recent report by S&P Global, however, stated that the Dangote Petroleum Refinery鈥檚 fuel prices are still high vis-a-vis the apparent drop in crude prices in the global market.

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