Relief on the Horizon: Fuel Prices to Drop Soon
Nigerians may soon witness a significant reduction in petrol prices following the Federal Government’s decision to resume the naira-for-crude policy with local refineries.
Oil marketers have expressed optimism, hinting that this move will ease the pressure on fuel prices and the economy.
Dangote Refinery to Lead the Price Cut
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that Dangote Refinery is expected to slash its petrol loading prices before the end of the week. This reduction is expected to reflect at the pump and offer Nigerians some relief.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, praised the Federal Executive Council (FEC) for reviving the initiative. He noted that although the final pricing model is yet to be disclosed, the move is promising.
A Long-Term Policy for Economic Stability
The FEC, in a meeting earlier this week, reaffirmed that the naira-for-crude deal is not a temporary fix but a long-term strategic policy. The agreement enables local refineries to buy crude oil in naira rather than dollars, which is aimed at reducing Nigeria’s dependency on foreign exchange.
This initiative first began in October 2024 but was briefly suspended in March when Dangote Refinery stopped accepting naira payments. That suspension led to an increase in depot and pump prices across the country.
Inclusive Refining Strategy Needed
While industry players welcomed the return of the naira policy, many urged the government to include all operational refineries in the scheme.
The Crude Oil Refinery-owners Association of Nigeria (CORAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) emphasized that expanding the deal beyond Dangote Refinery would maximize its benefits.
CORAN’s spokesperson, Eche Idoko, called for fair allocation of crude to all local refineries, while PETROAN President Billy Gillis-Harry stressed that the policy should uplift the local economy and reduce fuel prices across the board.
Policy Impact Already Felt
IPMAN Vice President, Hammed Fashola, stated that since Dangote halted naira-based sales, the naira’s value had weakened and fuel prices remained high. Now that the deal is back, he expects fuel prices to fall significantly.
Final Thoughts: A Step in the Right Direction
Stakeholders across the petroleum industry are applauding the policy’s revival, calling it one of the most powerful economic tools under President Tinubu’s administration.
However, they stress the need for swift implementation, especially at a time when Nigerians are grappling with high living costs.
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