The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Garima, has appealed to the Federal Government to lower the cost of crude oil supplied to the Dangote Petroleum Refinery in a bid to curb the escalating prices of Premium Motor Spirit (PMS), commonly known as petrol, which have now surpassed ₦1,000 per litre in several states.
In an exclusive interview with Nairametrics, Garima attributed the recent price hikes to volatile global oil markets, exacerbated by ongoing tensions in the Middle East, including the United States-Israel conflict involving Iran. These international factors have driven up crude oil prices, making it challenging for the Dangote Refinery to source affordable feedstock, which in turn affects domestic petrol 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 emphasized that such an intervention would enable the refinery to reduce its ex-gantry prices, allowing independent marketers to offer cheaper petrol to consumers and stabilize the market.
The call comes amid widespread reports of petrol pump prices climbing to ₦1,070 1,100 per litre in northern Nigeria and ₦1,030 ₦1,050 per litre in the South-West
Depot prices for marketers have also risen to between ₦1,000 and ₦1,010 per litre, compounded by additional costs for transportation and logistics.
This surge follows the Dangote Refinery’s recent adjustment of its gantry price by ₦221 within just four days, from ₦874 per litre to ₦995 per litre, leading to retail prices exceeding ₦1,050 per litre nationwide and causing supply shortages in areas like Lagos and Ogun.
Industry experts note that supporting the Dangote RefineryAfrica’s largest with subsidized or favorably priced crude could promote energy self-sufficiency and alleviate the economic strain on Nigerians amid rising inflation and fuel costs.
Major disruption to energy supplies from the region threatens to push up prices for consumers and businesses around the world.
About a fifth of the world’s oil supply is usually shipped through the Strait of Hormuz. But traffic through the narrow passage has all but halted since the war started a week ago.
On Sunday, Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as Supreme Leader, signalling that more than a week into the conflict hardliners remain in charge of the country.
The US and Israel launched fresh waves of airstrikes across Iran over the weekend, hitting multiple targets including oil depots.
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