Call to Expand Naira-for-Crude Oil Policy in Nigeria

The Nigerian Petroleum Refinery Association and the Dangote Refinery jointly called on the federal government on Tuesday to expand the naira-for-crude oil policy. This appeal follows a significant increase in petroleum product prices, with petrol rising from N835 to N1,050 and diesel surging from N960 to N1,360 per liter.

The price hikes are attributed to global tensions, particularly the conflict involving the U.S., Israel, and Iran, which has raised fears about crude oil supply disruptions. The associations expressed concern that the current naira crude oil policy does not adequately support local refiners, including the Dangote Refinery, which has a capacity of 19.5 million barrels per month.

They emphasized that expanding the policy would allow refiners to access crude feedstock in local currency, reducing exposure to foreign exchange volatility and stabilizing diesel prices. The associations urged the federal government to act swiftly to ensure adequate crude supply and mitigate the risk of further inflationary pressures on the economy.