Nigerian Association of Journalists urges Federal Government to ensure steady crude oil delivery to domestic refineries to combat soaring petrol costs

The Nigeria Auto Journalists Association is urging President Bola Ahmed Tinubu to give domestic refineries, especially the Dangote Refinery, priority access to crude oil supplies as a way to address the rising cost of petrol, which is linked to the ongoing Middle East crisis.

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This call comes amidst growing concerns about the impact of global energy market volatility on Nigeria's fuel prices, which have been affected by the heightened geopolitical tensions in the region.

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Only days after the Federal Government announced plans to distribute 100,000 Compressed Natural Gas conversion kits across the country, NAJA made its appeal, with the government's initiative aiming to ease the burden of rising petrol costs on motorists and commuters.

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The association views the CNG programme as a positive step but believes that strengthening local refining capacity through reliable crude supply would provide a more sustainable solution to the country's fuel pricing challenges.

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NAJA Chairman Theodore Opara is calling on the federal government to implement policies that enable domestic refineries to access crude oil directly from the Nigerian National Petroleum Company Limited in naira.

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According to Opara, the current arrangement, where the Dangote Refinery imports a significant portion of its crude, makes it vulnerable to fluctuations in the global oil market, and he noted that the refinery imports most of its crude, exposing it to the effects of the ongoing Middle East crisis.

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Opara stated that if the refinery receives direct crude supply from the NNPC, it will strengthen the country's long-term energy diversification strategy and reduce exposure to international supply shocks.

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Nigeria, despite being Africa's largest crude oil producer, still relies heavily on imported refined petroleum products, a situation that exposes the economy to external price volatility, according to the NAJA chairman.

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Opara explained that if Nigeria's major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions and help stabilise the downstream petroleum sector.

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He noted that while the CNG programme is beneficial in the medium term, ensuring that refineries within Nigeria operate at optimal capacity would have a more immediate impact on petrol pricing, and he added that CNG is a good transition policy for transportation, but the backbone of Nigeria's fuel supply must still come from efficient domestic refining.

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Industry observers argue that direct crude allocation to local refineries could also reduce pressure on the naira and help stabilise the domestic fuel market, particularly during periods of global supply disruptions.

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NAJA maintains that combining the CNG initiative with strong support for domestic refining would create a balanced strategy capable of protecting Nigerian motorists from the effects of international oil market volatility.