Petroleum marketers have called on the Federal Government to cushion the impact of rising petrol prices by supplying crude oil to local refineries, including the Dangote Petroleum Refinery, at subsidised rates.
According to the marketers, selling crude to domestic refiners at a reduced cost remains the most effective way to prevent a sharp increase in petrol pump prices nationwide.
They also urged the government to extend the naira-for-crude arrangement beyond the Dangote refinery to cover other modular refineries operating in the country.
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The Independent Petroleum Marketers Association of Nigeria made the appeal following recent adjustments in petrol prices.
The Dangote refinery recently raised its gantry price, a move that pushed the retail price of petrol at partner filling stations to about ₦839 per litre.
Shortly after the adjustment, global crude oil prices climbed above $70 per barrel, triggering concerns that petrol prices in Nigeria could approach ₦1,000 per litre, particularly in areas located far from refineries and major fuel depots.
Speaking on the development, IPMAN spokesperson Chinedu Ukadike said subsidised crude oil supply had become necessary to absorb the effects of volatility in global oil prices.
He explained that fluctuations in crude prices directly influence the cost of refined products such as petrol and diesel.
Ukadike stated that the government could introduce a special pricing arrangement for crude supplied to local refineries to help stabilise fuel prices, even when international crude prices rise.
He noted that subsidised crude would help prevent sudden increases in fuel costs, which often spill over into higher prices for goods and services.
He further explained that the recent request by the Dangote refinery for marketers to make additional payments on previously purchased petrol was linked to rising crude prices globally.
This, he said, underscored the need for government intervention through crude price support.
Last week, the Dangote refinery increased its petrol gantry price from ₦699 to ₦799 per litre, making it significantly higher than the landing cost of imported petrol.
Marketers who had earlier completed payments at the old rate were required to pay the difference before loading, following the withdrawal of a temporary price support arrangement.
The increase led to adjustments in pump prices across the country. In Lagos, petrol sold between ₦830 and ₦859 per litre, while the Nigerian National Petroleum Company Limited sold the product at about ₦849 per litre along the Lagos-Ibadan Expressway.
Ukadike noted that fuel consumption had slowed since the price increase, with many consumers becoming more cautious in their usage compared to the festive period when prices were lower.
Although Brent crude later settled around $69 per barrel, he warned that petrol prices would remain under pressure unless crude prices fall closer to $60 per barrel.
He added that both crude oil prices and exchange rates remain key drivers of fuel pricing in Nigeria.
The IPMAN spokesperson cautioned that sustained increases in crude prices could push petrol prices towards ₦1,000 per litre, especially in remote areas.
He also noted that rising crude costs were weakening marketers’ purchasing power, further straining the domestic fuel market.
