FG Justifies Petrol Price in Nigeria, Says it is 50% Lower Than Global Average
- The Federal Government says Nigeria’s petrol price is about 50% lower than the global average
- Petrol prices rose significantly after subsidy removal, but remain lower compared to some countries
- The government says the Naira-for-crude policy has helped shift Nigeria towards exporting refined products
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has said petrol prices in Nigeria remain significantly lower than the global average, attributing the development to economic reforms introduced under President Bola Tinubu’s administration, PUNCH reported.
The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, made this known on Tuesday during the commissioning of the agency’s headquarters in Abuja.
Source: UGC
Nigeria’s petrol price compared globally
Adedeji said Nigeria’s petrol price currently stands at about $0.88 per litre, which he described as lower than rates in several other countries.
According to him, petrol costs about $1.70 per litre in the United States, while prices are also higher in countries like India and South Africa.
He maintained that, on average, petrol prices in Nigeria are about 50% lower globally, attributing the gap to policies that support local refining.
Reforms and subsidy removal
The government official linked the current pricing structure to reforms implemented by the Tinubu administration, including the removal of petrol subsidy shortly after inauguration.
The policy ended a long-standing subsidy regime, leading to a sharp increase in pump prices from below N200 per litre to around N1,000, with further increases recorded in recent months amid global oil market pressures.
Prices have reportedly exceeded N1,200 per litre in some locations following developments in the international market.
Supply stability and local refining
Adedeji said the reforms have helped stabilise fuel supply across the country, noting that Nigeria would have faced severe shortages without the policy changes.
He pointed to increased output from the Dangote Petroleum Refinery as a key factor in improving supply reliability.
According to him, the availability of locally refined products has reduced dependence on imports and eased distribution challenges.
Naira-for-crude policy and export claims
The NRS chairman also highlighted the federal government’s Naira-for-crude policy, describing it as a major shift in Nigeria’s oil sector.
He said the policy has repositioned the country from being a net importer to a net exporter of petroleum products.
Adedeji added that the initiative has enabled local transactions in naira and supported domestic refining, citing reports that businessman Aliko Dangote has supplied multiple cargoes of refined products to other African countries.
Source: Getty Images
Marketers ask FG to approve import licences
Legit.ng earlier reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the federal government to reinstate petrol import licences, saying the move will promote competition and stabilise fuel prices in the country.
The association made this call in agreement with a similar call by the World Bank, which argued that allowing importation would prevent inflation.
According to PETROAN, the recommendation aligns with its long-standing advocacy for a liberalised downstream petroleum sector.
Source: Legit.ng
