Petrol Prices Expected to Drop Following New Crude Oil Sale Directive

Nigerian oil marketers anticipate a drop in petrol prices due to President Bola Ahmed Tinubu’s directive for crude oil to be sold to Dangote Refinery and other local refineries in Naira.

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, provided this insight following the President's instruction to the Nigerian National Petroleum Company Limited. The directive aims to facilitate the sale of crude oil to domestic refineries in Naira rather than foreign currency.

In response to the directive, Federal Inland Revenue Service Chairman Zacch Adedeji and other key stakeholders met with Finance Minister Wale Edun on Monday to discuss its implementation.

Gillis-Harry emphasized that selling crude in Naira to local refineries will eliminate all fees and expenses related to transporting imported crude. He noted, “The sale of crude in Naira to domestic refineries is expected to significantly impact the price of refined products. This is because logistics and importation charges will be removed, and we should see benefits reflected in the price of petrol.”