Despite stiff competition in Nigeria’s downstream petroleum sector, many oil marketers have yet to reduce the retail price of Premium Motor Spirit (PMS), popularly known as petrol, below the N739 per litre benchmark set by the Dangote Petroleum Refinery.
The refinery had, in December, reduced the pump price of petrol from about N900 to N739 per litre, a move that intensified competition and placed pressure on other marketers to adjust their prices or risk losing customers.
However, findings show that while some operators have lowered their prices to attract patronage, a significant number of filling stations still sell petrol at higher rates, ranging between N740 and N800 per litre, depending on location.
Commenting on the situation, the spokesman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, explained that the persistent high prices are largely due to logistics and transportation costs involved in moving petroleum products across different parts of the country, particularly to stations located in remote areas.
According to him, many independent marketers operate filling stations on the outskirts, where the cost of transporting fuel is considerably higher. He noted that although marketers are making efforts to sustain product availability nationwide, these logistics expenses inevitably affect pump prices.
Ukadike added that prices are expected to decline gradually as the Dangote Petroleum Refinery continues to supply PMS directly to independent marketers.
In a related development, IPMAN National President, Abubakar Maigandi Shettima, reaffirmed the association’s strong support for the Dangote Refinery, describing its operations as reliable and sufficient to meet Nigeria’s domestic petrol demand.
Shettima stated that since the commencement of supply, IPMAN members have consistently lifted products without complaints, stressing that continued importation of PMS is unnecessary given the refinery’s capacity to supply the entire country.
He also welcomed the refinery’s plan to deliver products directly to filling stations, noting that such a move would help stabilise distribution, reduce costs, and ultimately benefit consumers.
According to him, improved access to locally refined petroleum products has eased supply challenges and strengthened confidence among independent marketers, further reinforcing IPMAN’s commitment to domestic refining as a long-term solution for Nigeria’s downstream petroleum sector.
Oil Marketers Resist Pressure to Cut Petrol Prices Below Dangote Refinery Rate
