Nigerians may soon experience a reduction in the price of Premium Motor Spirit, popularly known as fuel, following the Federal Government’s reaffirmation of its commitment to the naira-for-crude oil exchange deal with Dangote Refinery and other local refineries.
On Wednesday, the government, through its Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative, announced that the policy would remain in effect indefinitely.
The initiative, which allows local refineries to receive crude oil in exchange for payment in naira rather than foreign currencies, aims to support domestic refining, reduce pressure on the foreign exchange market, and enhance Nigeria’s energy security.
In a statement shared on the official X (formerly Twitter) account of the Ministry of Finance, the committee, chaired by the Minister of Finance, Wale Edun, emphasized that the initiative would continue as long as it aligns with public interest and national economic goals.
This development comes as a relief amid growing concerns about fluctuating fuel prices and uncertainty in the downstream petroleum sector.
The news has been welcomed by key industry stakeholders. Billy Gillis-Harry, National President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), praised the decision, describing it as a vital component of Nigeria’s economic recovery efforts.
He commended President Bola Tinubu and the committee for taking proactive steps toward improving the country's energy outlook and economic stability. According to Gillis-Harry, PETROAN is optimistic that the initiative will be effectively implemented to deliver long-term benefits to both marketers and consumers.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), also expressed strong support for the continuation of the naira-for-crude deal.
He revealed that with the government's renewed commitment, Dangote Refinery is expected to introduce a new fuel price template that reflects the realities of the naira-based deal and the current international oil market trends.
Ukadike noted that the refinery could unveil the revised pricing before the end of the week, adding that relying on claims of old stock would no longer be acceptable in line with global best practices.
This renewed policy direction coincides with a significant drop in global crude oil prices, which fell by around six percent on Wednesday to hit a four-year low. Analysts believe this could further create favorable conditions for a fuel price reduction in Nigeria, especially under the revived naira-for-crude arrangement.
The backdrop to this development traces back to March 19, 2025, when Dangote Refinery suspended its sale of petroleum products in naira following stalled negotiations with the government.
The suspension led to an increase in the pump price of petrol and heightened tensions across the oil and gas sector.
With the naira-for-crude deal now back in force and enjoying widespread industry support, there is renewed hope that the days of unpredictable fuel pricing may soon give way to a more stable and affordable energy future for Nigerians.
All eyes are now on Dangote Refinery to release its new pricing template, which could mark the beginning of a more sustainable era for fuel distribution in the country.
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