FG Defends Petrol Price, Says Nigeria’s Cost 50% Below Global Average

Nigeria’s petrol prices remain significantly lower than global averages, the Federal Government has said, crediting President Bola Tinubu’s economic reforms for the trend. Speaking at the commissioning of the Nigeria Revenue Service headquarters in Abuja, Executive Chairman Zacch Adedeji said the price of petrol in Nigeria is about $0.88 per litre, compared with $1.70 in the United States, 25% higher in India, and 35% higher in South Africa. Globally, he added, Nigerian prices are 50% below average.

Adedeji linked the relative affordability to the revival of local refining capacity, particularly the full operation of the Dangote Refinery, which he said has bolstered energy security and stabilised supply. He contrasted the current situation with the immediate aftermath of Tinubu’s inauguration in May 2023, when the removal of fuel subsidies pushed pump prices from under N200 to nearly N1,000 per litre. Recent Middle East tensions have pushed prices above N1,200 in some areas.

The NRS chief also praised the Naira-for-Crude policy, which allows domestic crude to be sold in local currency. He described it as a historic shift that has moved Nigeria from being a net importer to a net exporter of petroleum products, with Dangote reportedly supplying 17 cargoes to other African countries. Adedeji said the policy, initially met with scepticism, has eliminated fuel queues and strengthened Nigeria’s position in the regional energy market.

He said the reforms, though difficult, were necessary to avert chronic fuel shortages and price volatility, and insisted that supply stability today is a direct result of the government’s willingness to take bold economic decisions.

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