Petroleum product marketers have called on the Federal Government to subsidise crude oil supplied to local refineries as petrol prices continue to rise across the country.
The marketers said selling crude oil to domestic refineries at subsidised rates would help cushion the impact of rising global oil prices and prevent sharp increases in pump prices. They also urged the government to extend the naira-for-crude arrangement beyond the Dangote Petroleum Refinery to include modular refineries operating in Nigeria.
The Independent Petroleum Marketers Association of Nigeria said recent price adjustments by the Dangote refinery had shown how vulnerable petrol prices remain to fluctuations in the international crude oil market. According to the association, changes in crude prices directly affect the cost of refined products such as petrol and diesel.
IPMAN’s spokesman, Chinedu Ukadike, said subsidising crude oil would act as a buffer for local refiners, allowing them to maintain more stable prices even when global oil prices rise. He noted that recent increases in crude prices forced refiners to review their pricing, leading to higher costs for marketers and consumers.
Following the adjustment by the Dangote refinery, petrol prices rose nationwide, with many filling stations increasing pump prices. In Lagos and surrounding areas, petrol has been selling at varying prices, depending on location and supplier, with some outlets selling close to N850 per litre.
Ukadike said the price increase had already slowed fuel sales compared to the December festive period, as consumers become more cautious with fuel usage due to higher costs. He added that marketers were also facing pressure, as their purchasing power has weakened amid rising crude prices and exchange rate challenges.
He warned that if global crude oil prices remain high, petrol prices could rise further, especially in areas far from refineries and major fuel depots. According to him, pump prices could approach N1,000 per litre in some locations if the current trend continues.
The IPMAN spokesman stressed that stabilising fuel prices would help protect consumers and reduce the knock-on effects on transportation costs and the prices of goods and services. He therefore urged the Federal Government to act quickly by introducing measures that would support local refining and ease pressure on petrol prices.
