Retailers Call for Stronger Naira-for-Crude Policy in 2026 to Stabilize Fuel Prices
Petroleum products retailers are urging the Federal Government and industry regulators to strengthen the naira-for-crude policy in 2026, saying effective implementation is critical for stabilizing fuel prices, boosting domestic refining, and easing pressure on retail operators. The call was made by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in its 2026 industry outlook.
According to PETROAN, while the naira-for-crude policy was designed to allow local refineries to purchase crude oil in naira instead of dollars, several challenges hindered its effectiveness last year. Delays in crude allocation, pricing disputes, pipeline disruptions, and inconsistent supply continued to hurt retailers, creating market uncertainty and reducing profit margins in the downstream sector.
Retailers also highlighted intense competition between importers and local refiners, describing 2025 as a year of price wars that led to frequent pump price adjustments, heavy losses, and weakened investment confidence. PETROAN emphasized that fair competition, stable crude supply, and robust regulatory oversight are essential to protect both consumers and operators.
On a positive note, PETROAN welcomed the approval of over 30 private refineries, with 23 currently under construction. Once completed, these projects are expected to add more than 850,000 barrels per day to Nigeria’s refining capacity, complementing the Dangote Refinery and reducing dependence on imports. The association believes that this expansion, coupled with a strengthened naira-for-crude policy, could transform the downstream sector.
Looking ahead, PETROAN urged policymakers to maintain import flexibility to ensure uninterrupted fuel supply, support alternative energy sources such as CNG, LPG, and solar, and deepen collaboration between regulators, refiners, and retailers. “Transparent allocation, predictable pricing, and steady crude supply are critical to reducing pump price volatility and sustaining long-term growth,” the association concluded.
source: The sun