Ajibola Olarinoye
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has suggested that Dangote Refinery should price premium motor spirit (PMS) at approximately N770 per litre.
Chinedu Ukadike, the spokesperson for IPMAN, made this statement on Monday in response to remarks from businessman Aliko Dangote, who claimed that Nigeria’s petrol is relatively inexpensive, with his refinery’s ex-depot price at N825 per litre.
Ukadike argued that PMS is not affordable, especially considering Nigeria’s status as a crude oil producer. He emphasized that the exchange rate significantly influences PMS pricing in the country, noting that a decrease in the exchange rate from N1600 to around N1200 could lower the price to below N750 per litre.
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“I personally don’t consider it to be overpriced. I believe petrol prices could drop to around N770. This is just my estimation; I’m not an oil refining expert. However, based on my research into refinery production costs and depot landing costs, petrol should not exceed N780 or N750, especially considering the current dollar exchange rate. Right now, the rate is approximately N1,600 per dollar, and if it appreciates further, the price of petrol from Dangote Refinery could be N750 per litre.
If the dollar were to decrease to N1,200, I can confidently say that petrol prices at the pumps would fall below N750,” he added.
Recently, Dangote noted that Nigeria’s petrol prices are 55 percent lower than the average in West Africa. He emphasized again that petrol prices in Nigeria are not high. Nigerians are currently paying between N875 and N910 for petrol in Lagos and Abuja.
