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Duke Advocates Domestic Crude Pricing at Production Cost

Blueprint·
Duke Advocates Domestic Crude Pricing at Production Cost

Donald Duke, the former governor of Cross River State and presidential candidate of the Peoples Redemption Party (PRP), stated that Nigeria should price domestic crude oil at its production cost instead of the international market price. During an interview in Abuja, he argued that this approach would allow the proceeds from diesel, aviation fuel, kerosene, and other by-products to reduce petrol costs.

Duke emphasized that Nigeria requires about 300,000 barrels of crude oil daily for domestic use out of an estimated production of 1.7 million barrels. He asserted that the crude allocated for domestic refining should be priced based on production costs, which he estimated at around $40 per barrel, compared to market prices of $70 or $80.

Duke proposed that the revenue from other products derived from crude oil should be factored into the pricing of petrol, suggesting that this could enable petrol prices to be set between N200 and N300 per litre. He stressed the importance of affordable energy as a competitive advantage for Nigeria's economy.

Plus234Feed summary based on reporting from Blueprint.

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