Nigerian oil marketers have commenced negotiations with international traders to import cheaper Premium Motor Spirit (PMS), commonly known as petrol, into the country. This move is aimed at remaining competitive in the business amidst disputes over fuel prices with the Dangote Petroleum Refinery.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and oil workers insist that the price of petrol from the Dangote refinery should be cheaper than N825 per litre. However, marketers argue that prices from domestic refiners are worrisome, leading to the shutdown of many filling stations due to price volatility caused by Dangote’s repeated price cuts.
According to Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, an arrangement is ongoing with foreign traders to import petrol at a lower price. He cited a previous agreement with a foreign trader to import petrol at N550 per litre, with the transaction to be conducted in naira instead of dollars. Gillis-Harry emphasized that the power of negotiation and large numbers would convince international traders to sell in naira.
IPMAN’s Publicity Secretary, Chinedu Ukadike, questioned the justification for Dangote’s prices, considering Nigeria’s status as an oil-producing country. He argued that Dangote’s price should be more competitive and pocket-friendly, especially with the stabilization of the naira-dollar exchange rate. Ukadike predicted that if the naira strengthens to around N1,100 against the dollar, petrol prices could dip below N750 per litre.
Ukadike also called on the government to revive the country’s refineries, which he believes would help tone down Dangote’s prices and promote competition in the sector. He stated that the non-functionality of government refineries has created a monopoly for Dangote, allowing him to dictate prices. While appreciating Dangote’s efforts in conquering fuel scarcity, Ukadike emphasized the need for a more competitive market that benefits Nigerians.
