Fuel Price Hike: IPMAN Tells FG What To Do To Cut Down Petrol Cost

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to intervene in the operations of Dangote Refinery in a bid to bring down the rising price of petrol across the country.

IPMAN National President, Abubakar Maigandi, made the appeal in an interview with Daily Post on Tuesday, amid a fresh increase in the retail price of Premium Motor Spirit (PMS), popularly known as petrol.

Naija News understands that petrol is currently selling for between ₦1,310 and ₦1,345 per litre in Abuja and neighbouring areas.

The latest increase followed upward adjustments in the gantry and ex-depot prices of petrol by Dangote Refinery and depot owners.

Reacting to the development, Maigandi urged the Federal Government to engage Dangote Refinery and other local refiners with a view to reaching an agreement that could bring down the price of petrol.

He stressed that government intervention in the downstream petroleum sector should not automatically be regarded as a return to fuel subsidy.

“We are appealing to the Federal Government to broker a deal with Dangote Refinery to reduce fuel prices.

“The government should intervene with Nigerian refiners, and this will lead to a reduction in fuel prices. It is different from fuel subsidy. In a situation where there is difficulty, the government should step in,” Maigandi told journalists.

According to him, government engagement with local refiners could help address the current pressure on petrol prices and provide relief for consumers.

Meanwhile, the management of Dangote Petroleum Refinery is reportedly considering stopping the sale of petrol to some licensed fuel importers in Nigeria.

Sources familiar with the development said the proposed move is linked to concerns over the quality of imported petrol and the possibility of such products being blended with locally refined petrol before reaching filling stations.

The refinery is said to be concerned that such blending could make it difficult for consumers and regulators to distinguish between Dangote-refined petrol and imported products.

Sources said the refinery is also worried that any quality-related complaints involving such blended products could negatively affect its reputation.

Dangote Refinery is reportedly uncomfortable with the continued importation of petrol by some companies despite increased local production.

Figures cited by the refinery reportedly showed that imported petrol accounted for about 43 per cent of total petrol supply in July, a situation it believes is reducing the market share available to local refiners.

Under the reported new arrangement, Dangote Refinery may give preference to marketers without petrol import licences, while companies that continue importing under the Federal Government-approved regime could lose access to supplies from the refinery.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued import licences in May to six companies, with a combined allocation of 720,000 metric tonnes of Premium Motor Spirit.

The companies are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.

The individual allocations reportedly range between 60,000 and 150,000 metric tonnes.