The Crude Oil Refinery Owners Association of Nigeria (CORAN) has said that the price of petrol in Nigeria could drop below ₦400 per litre if the current fall in global crude oil prices continues. CORAN argues that petrol could be sold at ₦350 per litre if crude oil hits $50 per barrel, especially with increased support for local refining.
However, despite crude oil dropping to $65 per barrel last week, its lowest since 2021 petrol prices in Nigeria continue to rise. According to CORAN, this is due to the weak naira, high logistics costs and the influence of middlemen who profit from fuel imports.
CORAN’s spokesperson, Eche Idoko, warned that unless the Federal Government sustains the naira-for-crude policy, Nigerians may not benefit from falling oil prices. He explained that local refineries could produce cheaper fuel if crude was supplied to them in naira, avoiding the costs and complications tied to foreign exchange.
Idoko accused some “middlemen” of sabotaging efforts to promote local refining by opposing the naira-for-crude arrangement. He claimed these agents profit by connecting Nigerian buyers with foreign fuel suppliers, adding no real value and pushing up prices.
The price of petrol recently rose to about ₦900 per litre in Lagos, despite a slight drop in landing cost. Idoko said this is due to FX issues, logistics and added costs from intermediaries.
He urged the government to protect the naira-for-crude initiative and support local refiners, warning that many have begun sourcing crude from other countries just to keep their operations running. He also dismissed attempts to politicize the policy, describing it as one of the most effective energy solutions Nigeria has seen in recent times.
In October 2024, the Nigerian National Petroleum Company Limited (NNPC) launched the naira-for-crude deal with the Dangote Refinery. However, reports show the supply has fallen short of the agreed volume, potentially undermining its impact.