Nigerians are bracing themselves for higher petrol prices due to the Federal Government’s failure to renew the Crude for Naira agreement between NNPC Limited and Dangote Refinery, combined with rising global crude oil prices.
The expired six-month agreement, which allowed NNPC to supply crude oil to Dangote Refinery in exchange for Naira payments, had initially reduced petrol prices from over N1,000 per liter to around N820.
However, with the agreement’s expiration, Dangote Refinery has halted sales of petrol products to the domestic market in Naira, leading to concerns of price increases.
Private oil depots have already raised their prices to N900 per liter, up from N890, due to rising crude oil costs and other global market factors.
The new pump prices vary across regions, with Lagos having the lowest rates at N930 per liter, while northern states record the highest at N960 per liter. The price hike is expected to impact transport fares, food, clothing, and other basic necessities.
Petroleum products marketers have warned that pump prices may increase further unless the government resolves the dispute between NNPC Limited and Dangote Refinery.
The Managing Director/CEO of the Center for the Promotion of Private Enterprise, Dr. Muda Yusuf, noted that the price hike could fuel inflation, affecting welfare, poverty, and investment profitability.
Consumers have expressed dissatisfaction with the government’s failure to resolve the dispute, citing the importance of local refineries in boosting the Nigerian economy. The government has been urged to revive the Naira for Crude program to stabilize the sector and prevent further price increases.