Fuel price: Why Naira-for-crude deal is restricted to Dangote Refinery – Refiners

The Crude Oil Refinery Owners Association of Nigeria says the Naira-for-crude deal is currently restricted to Dangote Refinery due to the quantity of crude oil available at the disposal of the Nigerian National Petroleum Company Limited and the Nigerian Government. The Spokesperson of CORAN, Eche Idoko disclosed this in an interview with DAILY POST.

His comment comes as the Federal Government announced the commencement of the Naira-for-crude sale deal to Dangote Refinery on Tuesday. Idoko explained that Dangote Refinery is the only petroleum products refiner in Nigeria producing Premium Motor Spirit which is why the plant is the beneficiary of the Naira-for-crude sell deal.

“The reason is simple, they said because of the quantity of crude oil the government has at its disposal, they will want to start with the only refinery producing PMS and in this case, the only CORAN member is Dangote Refinery.

“So the Naira for crude sale deal is between the government and Dangote Refinery,” he said. Recall that Zacch Adedeji, who doubles as the Chairman of Federal Inland Revenue Service and the Technical Sub-Committee on Naira-for-crude sale confirmed the commencement of the deal on October 1 through the Nigerian National Petroleum Company Limited. However, the spokesperson of Dangote Group and the NNPCL, Anthony Chiejina and Olufemi Soneye, respectively, have yet to confirm the kick-off of the Naira-for-crude deal as of the time of filing the report.

Dangote Refinery had blamed its current cost of petrol crude on importation. The company hinted that the price of its petrol is expected to drop upon the commencement of the Naira-for-crude deal. Dangote Refinery was responding to NNPCL’s statement that it bought Dangote Petrol at N898 per liter upon lifting on September 15, 2024.

Thereafter, NNPCL announced fresh petrol price hike across its retail outlets to between N950 and N1,100 per litre from about N617.

However, the Petroleum Marketers and refiners had expressed optimism that the Naira-for-crude deal between the Nigerian Federal Government and the Dangote Refinery would lead to a reduction in fuel pump prices.