Naira for crude: Group worried over impending surge in fuel price, urges FG’s intervention

The Concerned Citizens Forum on Tuesday urged the Federal Government to avert a looming hike in the pump price of Petroleum Motor Spirit, PMS by resolving the naira-for-crude.

There are reports that peatrol pump price could rise as negotiations continue over the naira-for-crude sales between the Nigerian National Petroleum Company, NNPC Limited, and local refiners.

DAILY POST recalls that Dangote Refinery last week Wednesday, alerted Nigerians of its decision to suspend the sale of its product in Naira from March 31 over the failure of NNPCL to sell its crude in Naira.

Although the refinery's decision has continued to trigger mixed reactions, the announcement recently sparked panic buying of fuel across the country.

Speaking at a press conference on Tuesday the President-General of the Forum, Samuel Olakitan, said the decision of the NNPCL to stop the Naira-for-crude initiative could have a negative impact on Nigeria's economy.

The group called on President Bola Tinubu to immediately intervene in the matter and avert the looming hike, saying it would worsen the economic hardship already bedeviling Nigerians.

According to the group, the sudden policy reversal by the NNPCL, “ostensibly compels our local refineries to procure crude oil on the international market, necessitating transactions in US dollars.

“Such a paradigm shift is poised to escalate operational expenditures, which will invariably cascade down to the populace through inflated fuel prices at the pump.

“The escalation in fuel prices that may result from increased operational cost borne by domestic refiners, and the potential depreciation of the Naira, stemming from the increase in demand for foreign exchange by domestic refiners, would exacerbate the economy hardship faced by many Nigerians”.

The development comes as meeting to discuss the fate of Naira-for-crude deal with Dangote Refinery failed to hold on Monday.