Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to reduce the cost of crude oil supplied to the Dangote Petroleum Refinery, warning that the current pricing structure is contributing to the sharp rise in petrol prices across the country.
National President of IPMAN, Abubakar Garima, made the appeal in an interview with Nairametrics, as the pump price of Premium Motor Spirit (PMS)—commonly known as petrol—climbed above ₦1,000 per litre in several states.
Garima linked the recent surge in fuel prices to fluctuations in the global oil market, worsened by geopolitical tensions in the Middle East involving the United States, Israel, and Iran. According to him, the rising cost of crude has made it increasingly difficult for the Dangote Refinery to obtain affordable feedstock, thereby affecting local fuel production and distribution.
“Government support for domestic refining could help moderate prices, suggesting that crude supplied to the Dangote Refinery should be offered at more favourable terms rather than strictly at prevailing international market prices,” Garima stated.
He explained that such a move could help the refinery lower its ex-gantry prices, making it easier for independent marketers to sell petrol at more affordable rates and ease pressure on consumers.
The appeal comes as fuel prices continue to spike across the country. Reports indicate that petrol now sells between ₦1,070 and ₦1,100 per litre in parts of northern Nigeria, while motorists in the South-West pay between ₦1,030 and ₦1,050 per litre.
In addition, depot prices paid by marketers have risen to around ₦1,000 to ₦1,010 per litre, with transportation and logistics costs further pushing up the final retail price.
The latest increase follows a recent adjustment by the Dangote Refinery, which raised its gantry price by ₦221 within four days—from ₦874 to ₦995 per litre. The development has pushed pump prices beyond ₦1,050 nationwide, while also triggering supply tightness in some areas, including Lagos and Ogun State.
Energy analysts say that providing the refinery with crude at more favourable rates could strengthen domestic refining capacity and reduce Nigeria’s dependence on imported fuel.
They add that such support for the **Dangote Refinery—Africa’s largest refining facility—**could help stabilise petrol prices and ease the economic burden on Nigerians already grappling with rising inflation and energy costs.
Nairametrics
