Home News Petrol Prices Soar Past ₦930/Litre, May Hit ₦1,000 Without Naira-for-Crude Deal Extension
News

Petrol Prices Soar Past ₦930/Litre, May Hit ₦1,000 Without Naira-for-Crude Deal Extension

209
Petrol Prices

In the past days, petrol prices have surged from approximately N860 per litre to over N930 per litre, with industry players warning that the price could hit N1,000 per litre if the naira-for-crude deal is not extended, reports say.

Marketers attribute the sharp increase to concerns over the agreement’s expiration and the potential shift to dollar-denominated transactions for crude supply.

A visit to MRS filling stations, a partner of Dangote Refinery confirmed the price hikes. At the MRS station along Kubwa Expressway in Abuja, petrol is now selling for N930–N950 per litre, an increase of N70–N80 per litre from the previous price of N860–N880 per litre in Lagos and Abuja, DailyPost reported.

It will be recalled that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira, citing difficulties in balancing its crude oil purchase obligations with sales proceeds. The refinery stated that the volume of petroleum products sold in naira had surpassed the naira-equivalent value of crude oil received, forcing it to prioritise transactions in foreign currency.

The refinery’s decision had sparked speculation about the fate of the naira-for-crude agreement, which was introduced to stabilise fuel prices and enhance local refining capacity. Under the deal, NNPC has supplied over 48 million barrels of crude to Dangote Refinery, with total deliveries exceeding 84 million since 2023.

The uncertainty surrounding the deal is raising concerns over potential disruptions in domestic fuel supply and inflationary pressures, especially if Dangote Refinery shifts entirely to dollar-based payments. The NNPC denied terminating the agreement, but negotiations on a new framework remain unresolved.

Read Also: CSS Imposes 0.5% Import Tariff On Goods From ECOWAS Member States 

Niger Withdraws from Lake Chad Military Force to Focus on Internal Security

 

About The Author

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

FG Moves to Hike Electricity Tariff Despite Economic Hardship
News

Tinubu to Spend N10bn on Aso Villa Solar Project as Nigerians Struggle with Power Outages

The Federal Government has allocated N10 billion for a solar mini-grid at...

BusinessNews

33 West Africans Rescued from a Human Trafficking Scheme in Côte d’Ivoire

Police in Côte d’Ivoire have rescued 33 West Africans from a human...

NewsSecurity

Malian Army Intensifies Antiterror Strikes Near Algerian Border Following Algeria Escalation

The Malian Armed Forces (FAMa) have intensified their counter-terror operations near the...

NewsSecurity

Suspected Coup Plot in Burkina Faso: Several Military Officers Arrested

Authorities in Burkina Faso have reportedly arrested several military officers, including two...