Fuel Price Revolution: Naira-For-Crude Deal Set To Slash Petrol Costs Starting Tuesday!

This development was confirmed in a statement on Sunday by Dare Adekanmbi, the spokesperson for Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, and the Federal Inland Revenue Service. Adekanmbi stated, “I can confirm that the Chairman, Zacch Adedeji, is working tirelessly to ensure the smooth execution of this agreement, which is vital for the benefit of Nigerians.”

The announcement follows the Federal Executive Council’s approval, under the leadership of President Bola Tinubu, to allow local refineries to buy crude oil and sell refined products in Naira, beginning on October 1, 2024. The NNPC will supply approximately 385,000 barrels of crude oil per day (around 11.5 million barrels monthly) to the Dangote Refinery, with the refinery providing equivalent volumes of refined petrol and diesel to the domestic market in Naira.

Meanwhile, Eche Idoko, Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, has called for the extension of the Naira-for-crude deal to other modular refineries across the country, not just the Dangote Refinery.

Petroleum marketers have expressed optimism that this deal could result in a reduction in fuel prices. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, noted in August that local refineries purchasing crude in Naira would drive down petrol prices.

Currently, Nigerians are paying between N950 and N1,100 per litre for fuel, following new price adjustments by NNPC in mid-September. The state-owned oil company had purchased petrol from the Dangote Refinery at N898 per litre, though Dangote officials contested the price, urging citizens to wait for the official announcement from the Adedeji-led committee regarding the price of Dangote’s petrol under the new Naira-for-crude deal.

Aliko Dangote, President of the Dangote Group, recently stated that his refinery’s petrol would be cheaper than imported alternatives, though the exact price remains undisclosed. Despite calls from the House of Representatives for transparency on the pricing, Dangote Refinery has yet to publicly reveal the cost of its petrol.