Fuel Price Hike Looms as Naira-for-Crude Deal Expires

By AbdulHakeem Mutiu Adejumo-Ajeseku Abuja-Nigeria

Petrol May Hit N1,000/Litre as Marketers, Depot Owners React to Dangote Refinery’s Suspension of Naira Sales

BTvNEWS: The expiration of the naira-for-crude deal between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Petroleum Refinery has sparked anxiety in the downstream arm of the oil and gas sector, with marketers and depot owners warning of an imminent hike in fuel prices.

“The six-month deal, which started in October 2024, officially ended on March 31, 2025, with no clear indication of its renewal,” said an industry source.

The development has led to a surge in petrol prices, with marketers and depot owners blaming the Federal Government’s reluctance to renew the deal for the hike, BTV News reports.

“The price of petrol has increased from around N860/litre to over N930/litre within one week, with marketers projecting a further hike to N1,000/litre in the coming weeks,” said Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN).

The development has sparked concerns among stakeholders, who fear that the hike could exacerbate the already high cost of living in the country.

“Industry sources attributed the price hike to the failure of the Federal Government to extend the naira-for-crude deal, which had helped to stabilize fuel prices in recent months,” Fashola said.

The deal, which involved the sale of crude oil to the Dangote refinery in naira, had helped to reduce the country’s dependence on foreign exchange and stabilize fuel prices.

However, the expiration of the deal has led to a surge in demand for foreign exchange, which has put pressure on the naira and driven up fuel prices.

Marketers and depot owners have warned that the situation could worsen if the Federal Government fails to renew the deal or find alternative solutions to stabilize fuel prices.

“We urge the Federal Government to take urgent action to stabilize fuel prices and prevent a further hike in the cost of living,” Fashola said.

The IPMAN has called on the Federal Government to renew the naira-for-crude deal, warning that the failure to do so could lead to a further hike in fuel prices.

“We also call on depot owners to reduce their prices, saying that the current hike was unjustified,” Fashola added.

The Dangote refinery had announced that it would no longer sell fuel in naira to local marketers, citing a mismatch between its sales proceeds and its crude oil purchase obligations, which are denominated in US dollars.

In a bid to address the situation, the IPMAN has called a stakeholders’ meeting to discuss the issue and find a way forward.

“The meeting, which is expected to hold soon, will bring together marketers, depot owners, and other stakeholders to discuss the implications of the naira-for-crude deal’s expiration and find a solution to the fuel price hike,” Fashola said.

As the situation continues to unfold, Nigerians are bracing themselves for a further hike in fuel prices, which could exacerbate the already high cost of living in the country.

“We urge the Federal Government to take urgent action to stabilize fuel prices and prevent a further hike in the cost of living,” Fashola reiterated.