Fuel marketers in Nigeria have hailed the new directive by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other refineries in naira instead of dollars….Click Here To Continue Reading>>

The marketers are optimistic that the decision would lower fuel prices nationwide, benefiting consumers and the economy.

TheNGblog reported that the Federal Executive Council (FEC) adopted the crude sale in naira decision starting with Dangote Refinery.

Dangote earlier refinery accused oil companies of selling crude at $2 to $4 per barrel, above the official price of the Nigerian Upstream Petroleum Regulatory Commission.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the decision as a big win for the country and said it would help to crash the petrol price.

NNPC’s filling stations sell petrol for around N620 to N650, while others sell above N700.

There have been conversations that the Dangote Refinery and other local refineries could help reduce petrol pump prices to N300 per litre.

Punch reports that Ukadike Chinedu, the national public relations officer of IPMAN, noted that President Tinubu’s crude sale in naira order would mitigate the frequent petrol scarcity and price hikes.

He said:

“We want to use this opportunity to thank the President for listening to the voice of the masses and marketers because we have repeatedly stated that the panacea to this frequent scarcity of petrol is for us to localise the sale of crude oil in Nigeria, especially in Nigerian naira.

“These approvals are very significant to the Nigerian economy, especially the sale of crude to Dangote in naira.
“It will strengthen and the value will rise in the international market. This is one of the best developments in Nigeria’s oil sector.”
Also, modular refinery operators are optimistic about crude sales in naira and positive impacts on the downstream oil sector.

The operators believe that the directive will lower the cost of petrol and strengthen the naira against the dollar.

Eche Idoko, publicity secretary of the Crude Oil Refiners Association of Nigeria, said:

“The supply of crude to local refineries in naira will undoubtedly bring down the cost of petrol and strengthen our currency.”

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