31st March 2025
Anxiety currently abounds in the downstream arm of the oil and gas sector as operators are yet to know the decision of the Federal Government on the naira-for-crude arrangement between the Nigerian National Petroleum Company Limited, NNPCL and the Dangote Petroleum Refinery.
The initial six-month deal, which started in October 2024, officially ends today, Monday, March 31, 2024.
Whether or not the deal would be extended or stopped is under discussion by NNPCL and Dangote refinery.
Fillers as at Sunday, was that the committee responsible for the negotiations was yet to resolve on the matter.
As this lingers, the effect is now felt in the pump prices of refined petroleum products as petrol has increased from about N860/litre to over N930/litre within one week.
Dealers blamed this on the failure of the Federal Government to extend the naira-for-crude deal between the NNPCL and the Dangote refinery.
READ MORE; NNPCL IPO Now At Final Stage
Our marketers also projected further hike in petrol price. They said the cost may hit N1,000/litre in weeks if nothing is done about the naira-for-crude deal that earlier helped in checking the rise in petrol prices.
An insider at the finance ministry familiar with the ongoing negotiations revealed that no significant progress has been made.
The source said both parties could not engage in any meeting throughout the past week.
“Nothing new has happened. Probably after the holidays, the committee will sit and meet,” the senior government official stated.
The government had on October 1, 2024, commenced the the sales of crude oil in naira to the Dangote refinery to improve supply, save the country millions of dollars in petroleum product imports, and ultimately reduce the pump prices of fuel.
