The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that Premium Motor Spirit (PMS) from Dangote Refinery should be sold at around N770 per litre, aligning with current foreign exchange rates.
Speaking on Monday, IPMAN’s National Public Relations Officer, Chinedu Ukadike, responded to recent remarks by Africa’s richest man, Aliko Dangote, who maintained that Nigeria’s petrol is relatively affordable. Dangote had revealed that the ex-depot price of petrol from his refinery currently stands at N825 per litre, which he claims is 55 percent lower than the West African average.
However, Ukadike challenged the notion of affordability, citing Nigeria’s status as a crude oil-producing nation and emphasizing the role of the exchange rate in determining local pump prices.
“On my part, I don’t feel it’s cheap. I think petrol should go as low as N770. That’s my own permutation,” Ukadike stated. “With what I’ve gathered — the refinery production costs and depot landing costs — PMS should not be more than N780 or even N750, in line with the dollar rate.”
He explained that with the current exchange rate at about N1,600 to the dollar, prices remain high. But if the naira appreciates to N1,200, the pump price could drop to below N750 per litre.
Despite Dangote’s optimism, Nigerians currently pay between N875 and N910 per litre of petrol in Lagos and Abuja, according to market observations by Daily Post.
The discussion continues to highlight the broader economic impact of forex fluctuations on fuel pricing in Nigeria, even as the country hosts Africa’s largest refinery.
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