Nigerian Marketers Push for Lower Petrol Prices Amid Naira-for-Crude Policy
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for a reduction in petrol prices, urging the Dangote Refinery to lower its ex-depot price from ₦970 per litre in response to declining landing costs, now estimated at ₦900.28 per litre.
Naira-for-Crude Initiative and Refinery Operations
In July, President Bola Tinubu’s administration approved the sale of crude oil to local refineries, including Dangote, in naira. This policy aimed to ease reliance on imports and stabilize domestic prices. As part of the initiative, the Nigerian National Petroleum Company Limited (NNPCL) began supplying 385,000 barrels of crude daily to Dangote Refinery starting October 1, equivalent to over 23 million barrels in two months.
While this policy was expected to reduce petrol prices, IPMAN has argued that foreign exchange rates and production costs still heavily influence pricing.
Challenges in Pricing
Dangote Refinery has adjusted its ex-depot price twice, from ₦990 to ₦970 per liter. However, market dynamics, including naira fluctuations and the facility’s production costs, have limited further reductions. IPMAN’s national officer highlighted the deregulation process as a positive development, fostering competition and addressing scarcity, though challenges in price adjustments remain.
“Despite the high prices, we are seeing healthier competition and supply,” he said. However, the ongoing reliance on crude imports, including shipments from the U.S., complicates efforts to reduce costs further.
Mixed Reactions to the Policy
Civil society organizations and advocacy groups have criticized the naira-for-crude policy for failing to provide significant relief to Nigerians. Debo Adeniran, president of the Coalition Against Corrupt Leaders, blamed an entrenched oil cartel and excessive regulations for maintaining high prices.
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Similarly, Auwal Rafsanjani, Executive Director of CISLAC, questioned the government’s commitment to leveraging local refineries to benefit citizens. “If public refineries are operational, citizens should experience relief. Yet prices remain on par with commercial rates,” he noted.
Looking Ahead
While the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has ruled out importing fuel for now, its members remain cautious about future supply from local refineries. A key meeting in January may determine the next steps if current demands for product availability are unmet.
As Nigerians brace for the festive season, IPMAN has expressed hope that improved refinery operations and market dynamics will eventually lead to more affordable fuel prices, alleviating the economic strain on citizens.
