Nigerian Refiners Challenge World Bank on Petrol Pricing

The Crude Oil Refiners Association of Nigeria, represented by Idoko, has contested the World Bank's assertion that imported petrol is cheaper than locally refined fuel. Idoko emphasized that the price difference arises from quality disparities, as imported petrol often meets lower regulatory specifications compared to local products.

He stated that the World Bank's comparison fails to account for critical factors such as density, flash point, and pour point, which affect fuel pricing. Idoko clarified that while the imported blends may be cheaper, they do not equate to lower quality in an illegitimate sense.

He also pointed out that the Dangote Refinery, despite having access to crude oil, faces disadvantages due to premium pricing and lack of incentives compared to international traders. The World Bank's report indicated that imported petrol is currently 12% cheaper than local fuel, reflecting distortions in Nigeria's domestic price structure amid rising global crude prices.