BmThe Petroleum Products Retail Outlets Owners
Association of Nigeria (PETROAN) has declared that the Federal Government’s new
Naira-for-Crude policy could soon lead to significant reductions in petrol
prices across the country.
Under the new policy, domestic refineries—including
the Dangote Refinery and other modular plants—will purchase crude oil in Naira
rather than U.S. dollars. PETROAN believes this shift will not only reduce
pressure on Nigeria’s fragile foreign exchange market but also spur local
refining investments and enhance national energy security.
“This is a strategic move that aligns with Nigeria’s
economic realities,” said PETROAN President, Billy Gillis-Harry Obele. “By
transacting in Naira, we can lower production costs and pass those savings on
to consumers.”
Obele credited the leadership of President Bola Tinubu
and key government figures—Minister of State for Petroleum Resources (Oil),
Senator Heineken Lokpobiri; Minister of Finance and Coordinating Minister of
the Economy, Wale Edun; NMDPRA CEO, Engr. Farouk Ahmed; and NUPRC Chief
Executive, Gbenga Komolafe—for driving reforms that prioritize Nigerian
interests.
“This policy shields us from the unpredictable global
oil market,” Obele added. “Local pricing becomes more stable and sustainable
when domestic refineries source crude in Naira.”
The announcement comes amid a global slump in crude
oil prices, fueled by slowing demand in major economies and a production surge
from non-OPEC nations. PETROAN says this market condition, combined with the
new policy, presents a unique opportunity to bring down pump prices in Nigeria.
“The world is facing an oil supply glut,” Obele said.
“Demand is softening due to economic headwinds in key economies, and the output
from non-OPEC countries continues to rise—putting downward pressure on prices.”
He also cited long-term impacts from former U.S.
President Donald Trump’s trade policies, which contributed to global economic
slowdowns and weakened oil demand.
Despite these global uncertainties, PETROAN remains
optimistic about the future of Nigeria’s energy market.
“With this Naira-for-Crude model, Nigeria has a chance
to insulate itself from external price shocks,” Obele concluded. “We are
committed to supporting policies that enhance local refining, conserve forex
reserves, and ultimately lower fuel prices for fuel in Nigeria
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