Fuel Price Hike: IPMAN Reveals How FG Can Slash Petrol Cost

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Federal Government to intervene in the operations of Dangote Petroleum Refinery and other local refiners to help reduce the rising cost of petrol across the country.

IPMAN National President, Abubakar Maigandi, made the call amid a fresh increase in the retail price of Premium Motor Spirit (PMS), popularly known as petrol.

According to reports, petrol is currently selling for between ₦1,310 and ₦1,345 per litre in Abuja and surrounding areas following recent increases in gantry and ex-depot prices by Dangote Refinery and depot owners.

Reacting to the development, Maigandi appealed to the Federal Government to engage Dangote Refinery and other domestic refiners with the aim of reaching an agreement that would lead to a reduction in petrol prices.

He stressed that government intervention to address the rising cost of fuel should not necessarily be interpreted as a return to fuel subsidy.

“We are appealing to the Federal Government to broker a deal with Dangote Refinery to reduce fuel prices,” Maigandi said.

“The government should intervene with Nigerian refiners, and this will lead to a reduction in fuel prices. It is different from fuel subsidy. In a situation where there is difficulty, the government should step in.”

Maigandi said stronger engagement between the government and local refiners could help ease the pressure on petrol prices and provide relief for consumers who are currently facing higher transportation and living costs.

Meanwhile, Dangote Petroleum Refinery is reportedly considering restricting the sale of petrol to some licensed fuel importers in the country.

According to reports, the proposed move is linked to concerns over the quality of imported petrol and the possibility of such products being blended with locally refined petrol before being distributed to filling stations.

Sources familiar with the development reportedly said the refinery is concerned that such blending could make it difficult for consumers and regulators to distinguish between petrol refined by Dangote and imported products.

The refinery is also said to be worried that any quality-related complaints involving blended products could affect its reputation, particularly as domestic refining capacity continues to expand.

Dangote Refinery is reportedly uncomfortable with the continued importation of petrol by some companies despite the increase in local production.

Figures reportedly cited by the refinery showed that imported petrol accounted for about 43 per cent of total petrol supply in July, raising concerns over the impact of imports on the market share of domestic refiners.

Under the proposed arrangement, Dangote Refinery could prioritise marketers without petrol import licences, while companies continuing to import fuel under the Federal Government-approved regime could potentially lose access to supplies from the refinery.

The development comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority issued import licences in May to six companies, with a combined allocation of 720,000 metric tonnes of Premium Motor Spirit.

The companies are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.

Their individual allocations reportedly range from 60,000 to 150,000 metric tonnes.

The latest developments have further intensified concerns over petrol pricing, domestic refining and the role of fuel imports in Nigeria’s downstream petroleum sector, with marketers urging the government to take steps that could ease the burden on consumers.