Victor EzejaDangote Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) also known as petrol to N865 per litre.
This comes after about two weeks, it increased its ex-gantry price of petrol to N880 per litre.
Join our WhatsApp ChannelPrime Business Africa gathered that the refinery confirmed the price reduction in a notice to marketers on Thursday morning. Also, the checks into petroleumprice.ng confirmed the development.
This comes after the intervention of the Nigerian government in the oil sector, assuring that the naira-for-crude deal would continue.
The naira-for-crude deal that allowed the sale of crude oil to domestic refineries in return for sales of refined petroleum product in the same local currency, was initially scheduled for six months between Dangote Refinery and the Nigeria National Petroleum Company (NNPCL), starting from October 1 2024. However, on 19 March, the Dangote Refinery announced temporary suspension of sales of petroleum products in naira.
Stakeholders in the oil and gas industry attributed the suspension to failure of the NNPCL to continue supplying the 650,000 barrels per day facility crude oil in naira.
The development consequently led to sudden hike in the landing cost and also pump price of petrol, reaching almost N1,000.
However, the Technical Sub-Committee on the Crude and Refined Product Sales in naira initiative convened a meeting on Tuesday to review progress and address ongoing implementation matters.
According to a statement posted on the official X handle of the Ministry of Finance on Wednesday, the stakeholders reaffirmed the government’s continued commitment to full implementation of the naira-for-crude deal initiative as directed by the Federal Executive Council (FEC).
The statement clarified that the Crude and Refined Product Sales in naira initiative is not a temporary measure, “but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
It further said the Committee acknowledges that implementation challenges may arise from time to time, but would be addressed through a coordinated effort by all parties involved.
“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it added.
Analysts said government’s intervention has been key to addressing the issues that had previously led to suspension in the naira-for-crude deal, which was initially meant to support local refining efforts and mitigate Nigeria’s reliance on costly fuel imports.
