Oil marketers have announced that Nigerians can expect a significant reduction in petrol prices soon, thanks to the continuation of the Federal Government’s Naira-for-Crude initiative, which allows crude oil and refined products to be sold in naira. The initiative is expected to reduce the reliance on the US dollar and stabilize fuel prices.
Industry insiders also highlighted that Dangote Refinery, a major player in the sector, is set to lower its petrol loading costs by the end of the week, contributing to further price cuts.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), reassured the public of an impending price drop following the Federal Executive Council’s (FEC) directive to fully implement the Naira-for-Crude agreement.
However, Ukadike did not specify how much the price will drop as the details of the government’s product pricing remain unclear.
Eche Idoko, spokesperson for the Crude Oil Refinery-owners Association of Nigeria (CORAN), emphasized the importance of including more local refineries in the program, which would increase the initiative’s benefits and impact.
The FEC confirmed on Wednesday that the Naira-for-Crude policy, originally delayed, will be fully implemented. This policy aims to support local refining, reduce Nigeria’s dependence on foreign currency, and ensure price stability for petroleum products.
The initiative started on October 1, 2024, and is designed to improve fuel supply, save foreign exchange, and cut the cost of imported petroleum products. However, earlier this year, Dangote Refinery paused the naira-based sales due to mismatches between crude oil purchases in dollars and sales in naira.
Despite this, the FEC emphasized that the policy is a long-term strategy to strengthen Nigeria’s refining capacity and reduce dollar demand for local petroleum transactions. Government officials are committed to overcoming challenges and ensuring the policy benefits the economy.
Marketers, including Ukadike and Idoko, have expressed optimism that the resumption of the Naira-for-Crude policy will lead to lower fuel prices and help stabilize the local economy.
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