See why marketers believe fuel price will crash below current price

• President Bola Tinubu has directed NNPC to sell crude to Dangote Refinery and other local refineries in naira
• Marketers have expressed hope that the federal government’s decision will help bring down petrol prices
• Nigerians currently pay N620 to as much as N850 per litre for fuel at filling stations, while the black market sells for over N1,300

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

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.

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

Oil marketers ready to sell fuel from Dangote refinery Photo credit: Bloomberg/contributor
Source: Getty Images

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

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

Marketers react to crude sale in naira

The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the decision as a big win for the country.

Punch reports that Ukadike Chinedu, the National Public Relations Officer of IPMAN, noted that President Tinubu will 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 this directive’s positive impacts on the downstream oil sector.

Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, said:

They believe that localizing crude oil sales in naira will lower the cost of petrol and strengthen the naira against the dollar.

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

FG gives orders to regulators over Dangote refinery

Legit.ng earlier reported that the Nigerian government, via NMDPRA, expects fresh reports to confirm the sulphur content of the diesel produced by the Dangote Refinery, as the firm denied claims of inferior products.

The authority’s spokesman, George Ene-Ita, disclosed that the NMDPRA had done its job and would not engage in a media war with anyone over its chief executive, Farouk Ahmed, ’s claims that the sulphur content on Dangote diesel is high.

He disclosed that the agency has about 15 engineers and scientists attached to the Dangote refinery. Their reports about the refinery’s sulphur content will be out on Monday, July 22, 2024.

Source: Legit.ng