Abuja – The Nigerian National Petroleum Company (NNPC) Limited has terminated its naira-for-crude oil arrangement with Dangote Petroleum Refinery and other domestic refineries, sparking concerns over a potential surge in fuel prices.
According to sources, NNPC has informed local refineries that they will now have to source crude oil from international suppliers and pay in dollars, rather than naira. This shift is expected to increase production costs, which could ultimately lead to higher fuel prices at the pump.
The decision comes after NNPC reportedly forward-sold all its crude oil, leaving local refineries to seek alternative sources. Industry experts warn that this could lead to a rise in fuel prices, exacerbating the country’s economic woes.
The development has raised concerns among stakeholders, who fear that the increased cost of production could be passed on to consumers. As the country grapples with economic challenges, any increase in fuel prices could have far-reaching implications for the average Nigerian.
The NNPC has yet to comment on the development, but industry insiders say the move is likely to have significant implications for the country’s downstream sector.
