The Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, has outlined measures the Federal Government can adopt to curb the persistent rise in fuel prices across Nigeria.
In a statement issued on Wednesday, Idoko explained that petrol prices are influenced by multiple factors beyond local refining capacity. He identified three major drivers: global crude oil prices, foreign exchange fluctuations, and the high cost of transportation and distribution within the country.
He noted that even with increased domestic refining, fuel prices may continue to rise unless these underlying challenges are addressed holistically.
Idoko emphasized the need for the government to enforce the Domestic Crude Supply Obligation (DCSO), ensuring local refineries receive priority access to crude oil before export. He added that crude supplied domestically should be priced fairly, excluding international export-related costs like freight and insurance, to make refining more affordable.
He also called for stability in the naira-for-crude policy to reduce the impact of exchange rate volatility on fuel pricing, alongside efforts to increase crude oil production.
While acknowledging the role of the Dangote Refinery, Idoko urged the government to support other local refineries such as Waltersmith Refinery, Aradel Holdings, and Duport Midstream Company to encourage competition and improve supply stability.
Furthermore, he highlighted the need to cut down logistics and distribution costs, including expenses tied to transportation, port charges, poor road infrastructure, and multiple levies, noting that these significantly affect pump prices.
According to him, increasing crude allocation to local refineries will help lower fuel prices, but only if it is done consistently, fairly priced, and extended to all operational refineries.
He concluded that strategic pricing and allocation of crude oil for domestic use is essential for achieving long-term energy security and stabilizing fuel prices in Nigeria.