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Fuel Price: Why Naira-for-Crude Deal Is Limited to Dangote Refinery – Refiners

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has stated that the Naira-for-crude deal is currently limited to Dangote Refinery due to the quantity of crude oil available to the Nigerian National Petroleum Company Limited (NNPCL) and the federal government. CORAN spokesperson, Eche Idoko, revealed this in an interview with us following the government’s announcement of the Naira-for-crude sale to Dangote Refinery.

Idoko explained that Dangote Refinery is the only facility in Nigeria refining Premium Motor Spirit (PMS), making it the sole beneficiary of the deal. He said, “Because of the limited quantity of crude oil available, the government is starting with the only refinery producing PMS, which is Dangote Refinery.”

Zacch Adedeji, Chairman of the Federal Inland Revenue Service and the Technical Sub-Committee on the Naira-for-crude sale, confirmed the commencement of the deal on October 1 through the NNPCL. However, spokespeople for Dangote Group and NNPCL, Anthony Chiejina and Olufemi Soneye, have not confirmed the start of the agreement.

Dangote Refinery has attributed its current petrol costs to importation but suggested that prices will decrease once the Naira-for-crude deal fully commences. The refinery was responding to NNPCL’s statement that it purchased Dangote petrol at N898 per liter on September 15, 2024. NNPCL subsequently raised petrol prices at its outlets to between N950 and N1,100 per liter, up from around N617.

Despite this, petroleum marketers and refiners remain optimistic that the deal will eventually lead to a reduction in fuel pump prices.

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Written by Charles Daisi

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