Nigeria’s oil marketers predict a decrease in petrol prices due to President Tinubu's directive for crude oil sales in Naira to local refineries. This move aims to cut logistics and importation costs, potentially saving Nigeria $7.3 billion annually. The policy's impact is expected amid ongoing supply challenges.
Nigeria’s oil marketers predict that selling crude oil in Naira to Dangote Refinery and other domestic refineries will lead to a significant decrease in petrol prices. Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, shared this insight in an interview with DAILY POST.
This development follows President Bola Ahmed Tinubu’s directive for the Nigerian National Petroleum Company Limited (NNPCL) to transact crude oil sales in Naira, aiming to support local refineries. On Monday, Finance Minister Wale Edun met with key stakeholders, including Federal Inland Revenue Service Chairman Zacch Adedeji, to discuss the implementation of this directive.
Gillis-Harry emphasized that this move would eliminate logistics and importation costs associated with crude oil purchases. “The sale of crude in Naira to domestic refineries is expected to drastically lower the price of refined products,” he stated. By removing these additional charges, the benefits of reduced petrol prices should become evident.
Additionally, Adedeji revealed that this policy shift could save Nigeria approximately $7.3 billion annually. However, there are ongoing challenges with crude oil supply to local refineries, including Dangote Refinery, which may affect the overall impact.
As the policy unfolds, the Nigerian government anticipates that these measures will stabilize and potentially reduce petrol prices, providing economic relief to consumers across the country.
