The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) says the naira-for-crude policy will insulate Nigerian’s economy from the global market volatility.
The federal government on Wednesday announced that the naira-for-crude deal will continue after the first phase ended on March 31.
Commenting on the development, Billy Harry, the association’s national president, said it the federal government’s assurance has sparked hopes of a corresponding reduction in petrol prices.
Gillis-Harry spoke while addressing journalists in Abuja, according to a statement on Thursday by Joseph Obele, PETROAN’s spokesperson.
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“PETROAN national president believes that with the Naira-for-Crude policy in place, the benefits of lower global crude prices will be passed on to consumers, leading to more affordable fuel prices,” the statement reads.
“This expectation is based on the understanding that local refineries will be able to produce petroleum products at a lower cost, which will then be reflected in the prices charged to consumers.
“Dr Billy Harry mentioned that core reason for the global crude oil price drop is the weakening global demand due to economic slowdowns in major economies, coupled with increased production from non-OPEC countries, leading to a supply glut in the market.
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“Additionally, President Trump’s recent policy of imposing reciprocal tariffs has also contributed to the decline in crude oil prices, as it has dampened global economic growth and led to a recession, further depressing oil prices.
“As the global crude oil price continues to fluctuate, PETROAN is optimistic that the Naira-for-Crude policy will help to insulate the Nigerian economy from the volatility of the global market.
“By reducing the country’s dependence on foreign exchange and promoting local refining, the policy is expected to lead to greater stability in the downstream sector and more affordable fuel prices for consumers.”
Obele said with the federal executive council’s (FEC) directive to fully implement the policy, PETROAN is hopeful that the benefits of lower global crude prices will soon be felt by Nigerian consumers.
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PETROAN LAUDS FEC FOR APPROVING CONTINUATION OF POLICY
The spokesperson said the association has expressed support for FEC’s decision to continue the naira-for-crude policy.
He said Harry commended President Bola Tinubu, Heineken Lokpobiri, minister of state for petroleum resources, and Wale Edun, minister of finance.
Obele noted that Harry also lauded Farouk Ahmed, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Gbenga Komolafe, the chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for championing roundtable talks aimed at ensuring petroleum products affordability and price stability in Nigeria.
He added that the development is part of a broader effort to stabilise the downstream sector and improve the Nigerian economy — a long-term strategy to support local refining and conserve foreign exchange (FX) reserves.
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