IPMAN Advocates for Petrol Price Reduction as Naira-for-Crude Deal Progresse

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a reduction in petrol prices nationwide, urging the Dangote Refinery to adjust its ex-depot price from ₦970 per litre following a drop in the estimated cost of landing petrol to ₦900.28 per litre.

This appeal comes as Nigeria continues its naira-for-crude initiative, which began in October 2024, enabling the Nigerian National Petroleum Company Limited (NNPCL) to supply crude to local refineries in exchange for naira. The program, piloted with the Dangote Refinery, aims to reduce reliance on imported petroleum products and stabilize fuel prices.

Reports indicate that 23 million barrels of crude oil have been supplied to the Dangote Refinery over the past two months. However, the refinery has struggled to meet its production capacity of 650,000 barrels per day due to insufficient crude supply from the NNPCL. Vice President of Dangote Industries Limited, Devakumar Edwin, disclosed that NNPCL had only delivered a fraction of the agreed minimum of 385,000 barrels per day.

Despite these challenges, IPMAN's National Publicity Officer, Chinedu Ukadike, expressed optimism about the refinery’s potential to lower petrol prices, citing recent reductions in its ex-depot price from ₦990 to ₦970 per litre. Ukadike emphasized that factors such as production costs, exchange rates, and market forces would continue to influence pricing.

Meanwhile, civil society organizations have criticized the government’s handling of the naira-for-crude initiative. Debo Adeniran, National President of the Coalition Against Corrupt Leaders, accused local and international cabals of inflating petrol prices, making locally refined products as expensive as imported fuel.

Similarly, Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, condemned the government for failing to alleviate the burden on citizens. He argued that locally refined fuel should offer some relief, especially after the removal of fuel subsidies.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has ruled out importing petroleum products for now, despite reduced landing costs. PETROAN National President, Billy Gillis-Harry, reaffirmed the group’s commitment to sourcing products locally, emphasizing the importance of supporting the government’s initiative.

As stakeholders push for a review of pricing policies and increased crude supply, Nigerians remain hopeful that the naira-for-crude initiative will deliver on its promise of affordable fuel prices.