The Petroleum and Natural Gas Senior Staff Association (PENGASSAN) has slammed the government, regulators, and petroleum marketers for exploiting Nigerians with high prices for Premium Motor Spirit (PMS) otherwise known as fuel or petrol, insisting that a liter of the product should cost between N700 and N750.
This was as the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State chapter, expressed concern over the recent announcement by Dangote Petroleum Refinery to begin distribution of PMS and diesel to marketers, dealers and premium consumers nationwide from August 15, 2025.
Speaking on the state of the oil and gas industry in Abuja, yesterday, President of PENGASSAN, Festus Osifo, said that despite crude oil prices fall from $80 to $60 per barrel, petrol prices remain stagnant with just a slight reduction that is below N10, around N900 per liter.
He explained that crude oil prices and exchange rates account for about 80 per cent of the final retail price of PMS, and based on prevailing international pricing benchmarks, the cost of fuel should have adjusted downward.
Osifo attributed the price disparity to the failure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to effectively monitor and regulate petroleum products pricing.
He urged NMDPRA to publish pricing templates to ensure transparency and prevent exploitation under the deregulated system. Osifo added that publishing the price band for petrol will empower Nigerians to demand a fair price when they are exploited by marketers.
The PENGASSAN president added that the spirit of deregulating the downstream sector demanded a change in prices in strict accordance with the international prices of crude oil. He stressed that for the umpteenth time, the Association has urged the Federal Government to adopt the 51:49 per cent ownership model that has worked for Liquefied Natural Gas (LNG) for its refineries.
Lauding President Bola Ahmed Tinubu for signing three Executive Orders aimed at reforming the oil and gas sector, oil workers said insecurity in the oil-rich Niger Delta would hamper the objectives of the Orders.
In another development, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) raised concerns over Dangote’s plans to begin direct distribution of fuel nationwide.
Chairman of Rivers State Chapter of IPMAN, Tekena Ikpaki, said yesterday that while the initiative might appear generous on the surface, overlooking the broader implications it holds for Nigeria’s downstream sector would be risky.
Recall that Dangote Petroleum Refinery had in a statement released over the weekend, announced the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape.
According to the statement, effective August 15, 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost distribution network.
Dangote backed the initiative with a fleet of 4,000 newly acquired Compressed Natural Gas (CNG)-powered tankers to improve access to fuel across the country. With registration already ongoing since Monday, June 16, it is expected to close on August 15.
Ikpaki warned that such an unprecedented scale of distribution, if left unchecked, could significantly undermine the independence and survival of thousands of small and medium-scale operators across the country.
Also, reacting to the development, PETROAN’s spokesperson, Joseph Obele, in a statement, yesterday, warned that the development could lead to a monopoly in disguise and pose a significant job loss threat to Nigeria.
The PETROAN chief added that this could lead to higher prices, reduced competition and decreased economic efficiency. He urged Dangote to compete with global refineries, not operate as a distributor in the downstream sector.
The National President of PETROAN, Billy Gillis Harry, urged the Executive Director of NMDPRA and the Ministers of State for Petroleum to implement price control mechanisms to prevent any form of monopoly.
Industry stakeholders opined that the moves by Dangote were not just about fuel delivery, but also an attempt to control the entire value chain, from refining to retail. Truck logistics experts note that while 4,000 trucks are significant, it is not transformational in a country with over 30,000 fuel stations and a vast geography. They also warned that the use of trucks could still overwhelm road infrastructure, especially in the absence of a supporting CNG fuelling network.
Expressing a mix of cautious optimism and deep concern, Emeritus Professor of Petroleum Economics, Wumi Iledare, highlighted that a level playing field is crucial in a deregulated downstream environment.
Iledare acknowledged that the move was a vote of confidence in Nigeria’s energy market; he noted that the investment’s scale raised concerns. “We have seen how Dangote’s entry has reshaped competition in other sectors. Without regulatory guardrails, this could lead to a dominant firm oligopoly, pushing smaller operators out of the market,” he cautioned.
Madaki Ameh, a former Shell executive and energy lawyer, welcomed the investment, saying it’s a timely move that could lead to lower fuel prices.