Nigeria Proposes ₦1/$ Crude Pricing for Domestic Refineries

Patrick Oludare proposes a pricing mechanism for crude oil allocated to domestic refineries in Nigeria, suggesting a special rate of ₦1 to $1. This approach aims to alleviate the financial burden on consumers who face high fuel prices due to purchasing refined products at international dollar rates.

Under this framework, crude oil assigned to refineries such as Dangote, PHRC, WRPC, and KRPC would be priced at ₦1/$, while the general foreign-exchange market would continue to operate normally. The impact on refined product prices would be significant; for instance, diesel could drop from ₦1,900 to approximately ₦1.40 per litre, petrol from ₦1,260 to about 93 kobo per litre, and aviation fuel from ₦1,600 to ₦1.18 per litre.

This mechanism is described as a sector-specific domestic pricing strategy, not a general exchange-rate policy, aimed at stabilizing retail prices across the domestic value chain.