Uche Cecil Izuora
Maritime lawyer and a Senior Advocate of Nigeria (SAN), Dr. Olisa Agbakoba, has argued that petrol price in Nigeria could sell at N400 per liter if government applies similar policy in some major crude producer countries.
According to Agbakoba, some major oil producing nations apply price differential in the sale of crude to domestic refiners to offset rising prices of gasoline and reduce pressure on cost of living.
In a remark during the 2026 Energy conference organised by the National Association of Energy Correspondents of Nigerian (NAEC) on Thursday in Lagos, with the theme, “Access To Assets: Empowering Players & Driving Growth” Agbakoba, advocated for petrol price cut as the nation attains self sufficiency in petroleum products refining.
His comments is coming as the government proposes a measure to cap petrol prices at about 1,350 naira ($1.02) per litre, asking refiners and fuel importers to absorb temporary increases and recoup losses once costs ease, its finance minister said on Thursday.
Minister Taiwo Oyedele said the measure had become necessary after fuel costs surged to record highs, driven by rising global oil prices amid Middle East tensions
The government also plans a 30-day fuel discount programme, selling petrol at cost and prioritising public transport to ease pressure from soaring pump prices
Officials are considering forward crude sales to local refiners too to lock in feedstock prices and reduce exposure to swings in global oil markets, he said
Oyedele said the government could impose a windfall tax on energy companies found to be profiteering at consumers’ expense, with proceeds earmarked for transport subsidies and fuel vouchers for low-income urban workers
Rising fuel prices have revived fresh cost-of-living pressure on President Bola Tinubu’s government ahead of elections in January.
He explained that the concept of subsidy removal as announced by President Bola Tinubu was misunderstood.
According to him, the President understood the monumental fraud in the subsidy system and how it was benefiting those behind the scheme and wanted to end the impunity but was interpreted to be a price hike with market operators raising prices of commodities which brought hardship to the people.
He explained that in Saudi Arabia, there is what is called price differential and that is what ought to apply in Nigeria to be able to manage the price mechanism.
According to him, if price of exported crude is for example sells at $100 per barrel, the price at which it is sold to local refiners should be at the price of crude production in the country and not what is sold at the international market.
Further interpreting the petroleum refining economics, he said that several products like automotive gas oil (AGO) kerosine, Aviation fuel among others could be derived from the crude processed locally from which refiners could offset production cost and drastically bring down prices of petrol which is just a single product among them.
He also recalled that during the subsidy regime, fraudulent practices occurred when ‘Mother Vessels’ bringing petrol anchored in Lome and other neighboring countries and with daughter vessels they are brought into the country but diverted and invoices forwarded to authorities.
He therefore advocated a price differential policy for crude supplied to local refineries as a measure to reduce in balances in pricing mechanism.