Despite stiff competition in Nigeria’s downstream oil sector, many petrol marketers have resisted the pressure to sell Premium Motor Spirit (PMS) below the N739 per litre price set by the Dangote Petroleum Refinery, keeping pump prices significantly higher across much of the country.
The Dangote Refinery in December cut its ex-depot petrol price from about N900 to N739 per litre, a move widely seen as an attempt to force down retail prices and win market share from importers and other local distributors. However, checks by Vanguard show that while a few marketers have adjusted their pump prices to attract customers, many others continue to sell petrol at between N740 and N800 per litre, depending on location.
Reacting to the development, the spokesman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, blamed the price gap on the high cost of logistics involved in moving petrol across the country.
“Most of our members have filling stations in the outskirts, and it costs a lot to move petroleum products from one part of Nigeria to another,” Ukadike said. “We are doing our best to sustain supplies at filling stations, but these logistics costs have to be factored into the pump price. However, as the Dangote Refinery continues to supply independent marketers, we expect prices to gradually come down.”
IPMAN’s National President, Abubakar Maigandi Shettima, reaffirmed the association’s support for the Dangote Refinery, saying its operations have significantly improved supply reliability for independent marketers.
“Our members fully support Dangote Refinery. Since supply began, marketers have consistently lifted products without any complaints. We oppose continued importation because Dangote Refinery has the capacity to meet Nigeria’s entire PMS demand,” Shettima said.
He added that the refinery’s plan to deliver products directly to filling stations would help stabilise distribution and reduce costs, ultimately benefiting consumers. According to him, improved access to locally refined petrol has eased supply pressures and boosted confidence among independent marketers.
Shettima said IPMAN remains committed to domestic refining as the long-term solution to Nigeria’s downstream petroleum challenges, stressing that increased reliance on local production will help reduce volatility in pump prices and strengthen energy security.
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