Petroleum product marketers have called on the Federal Government to intervene by supplying crude oil to the Dangote Petroleum Refinery and other local refineries at subsidised rates, warning that this may be the only way to cushion Nigerians against a sharp rise in petrol prices.
The marketers, under the umbrella of the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged President Bola Tinubu to consider subsidising crude oil sold to domestic refiners and to expand the naira-for-crude arrangement to include modular refineries across the country.
Their appeal follows a recent increase in petrol prices by the Dangote refinery, which pushed pump prices to about N839 per litre at MRS and other retail outlets. The situation was further compounded by a rise in global crude oil prices, which climbed above $70 per barrel, sparking concerns that petrol could sell for as much as N1,000 per litre in some parts of Nigeria, particularly areas far from refineries or major storage depots.
Speaking on the issue, IPMAN’s spokesperson, Chinedu Ukadike, said supplying crude oil to local refineries at a subsidised rate had become crucial to absorbing the impact of volatile global oil prices. He noted that fluctuations in crude prices directly influence the cost of refined products such as petrol and diesel.
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Ukadike argued that a special pricing arrangement for crude oil would help stabilise pump prices, even when international market conditions are unfavourable. He said the government could structure the subsidy within the existing naira-for-crude framework being used for the Dangote refinery.
According to him, such a measure would prevent sudden hikes in fuel prices that often trigger increases in the cost of transportation, goods, and services nationwide. He stressed that subsidised crude oil for local refiners would act as a buffer against inflationary pressures linked to energy costs.
The IPMAN spokesperson also explained that the recent request by the Dangote refinery for marketers to pay an additional N100 per litre on already purchased petrol was driven by rising global crude prices. He said this development underscored the need for the Federal Government to consider a crude oil subsidy for domestic refining urgently.
Last Monday, the Dangote refinery raised the price of petrol on its gantry from N699 to N799 per litre, putting it about N70 higher than the landed cost of imported Premium Motor Spirit. Marketers who had completed payments and obtained loading approvals at the old price were subsequently asked to make up the difference before lifting their products. The adjustment followed the end of a temporary festive price support and the cancellation of earlier loading authorisations.
