PETROAN hails Naira-for-Crude policy, expects petrol price drop
BY MOTOLANI OSENI
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended the Federal Executive Council for approving the continued implementation of the Naira-for-Crude policy, expressing optimism that the initiative, coupled with the recent global decline in crude oil prices, will lead to a reduction in petrol prices across the country.
Speaking in Abuja, PETROAN’s National President, Dr Billy Gillis Harry, praised President Asiwaju Bola Ahmed Tinubu and key officials including the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed; and the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, for their roles in pushing for reforms to stabilise petroleum product prices and strengthen the downstream sector.
The Naira-for-Crude policy, which mandates the sale of crude oil to local refineries in Naira instead of US dollars, aims to enhance domestic refining capacity, reduce Nigeria’s reliance on foreign exchange, and boost energy security.
The Federal Executive Council’s full endorsement of the policy is seen as a strategic move to deepen local refining, lower production costs, and conserve foreign reserves.
READ ALSO: “No distraction, it’s time to rebuild – Nenadi Usman, assured LP leaders
Dr Harry noted that the recent slump in global crude oil prices, driven by weakened demand from major economies, increased output from non-OPEC producers, and economic slowdowns caused by protectionist trade policies, especially those implemented by former U.S. President Donald Trump, has created an opportunity for lower petrol prices domestically.
He added that with local refineries now sourcing crude in Naira, the impact of falling global prices can be more directly transmitted to the Nigerian market, resulting in cheaper fuel for consumers. According to him, this shift is expected to shield the country from the volatility of international oil markets and ensure greater stability in fuel pricing.
PETROAN remains hopeful that, under the full implementation of the policy, Nigerian consumers will begin to benefit from the lower global crude prices through reduced pump prices and improved access to petroleum products.
