Nigerians may soon begin to pay less for petrol, as oil marketers have expressed hope that the pump price of the product will drop significantly following the Federal Government’s decision to fully resume its naira-for-crude oil policy.
Instead of paying for crude oil in U.S. dollars, local refineries will now be allowed to buy crude and sell petrol in naira. This move, experts say, could ease pressure on the country’s foreign exchange and help bring down fuel prices in the coming days.
Marketers say the return of this policy means local refineries like the Dangote Refinery can operate more smoothly without struggling to match dollar-based crude purchases with naira-based fuel sales.
“The good news is that with this development, Nigerians should start seeing relief at the filling stations very soon,” said Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
According to him, a reduction in petrol loading prices is expected from the Dangote Refinery by the end of the week, which would directly lead to lower pump prices for consumers.
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This policy was initially introduced in 2024 to boost local refining and reduce reliance on imported fuel. However, its temporary suspension in March led to higher fuel costs, as refineries were forced to revert to paying in dollars—driving up operational expenses and fuel prices.
Industry leaders welcomed the policy’s return and its new status as a permanent measure. The Federal Executive Council announced on Wednesday that the policy is now a long-term plan, not a trial run.
Eche Idoko, spokesperson of the Crude Oil Refinery-owners Association of Nigeria (CORAN), stressed that including more local refineries in the initiative will ensure its full impact is felt. “This is not just about Dangote. All our local refineries must benefit from this policy for it to truly work,” he said.
Similarly, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) called for equal access to crude oil for all licensed refineries in Nigeria. The association’s president, Billy Gillis-Harry, praised the government’s move but urged full and fair implementation.
“This is a policy that can help Nigeria grow its economy from within. It will make fuel more affordable and reduce our overdependence on foreign exchange,” he said.
The Federal Government insists the initiative is key to boosting energy security and reducing the nation’s vulnerability to dollar fluctuations.
Speaking on the recent announcement, IPMAN Vice President Hammed Fashola added that the naira-for-crude policy was a step in the right direction. “This is what we’ve been asking for. The price of fuel went up when the policy was suspended. Now that it’s back, Nigerians should expect a reduction,” he said.
Though the exact new fuel price has not been announced
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