Nigeria Should Price Domestic Crude at Production Cost, Says Donald Duke
Former Cross River Governor Donald Duke has called for Nigeria to supply crude oil to domestic refineries at production cost rather than international market prices, arguing that the approach would help lower fuel costs.
Former Cross River Governor and Peoples Redemption Party presidential candidate, Donald Duke, has called on the Federal Government to price crude oil supplied to domestic refineries at its cost of production.
Duke said the approach would help reduce the cost of refined petroleum products and make fuel more affordable for Nigerians.
He argued that Nigeria should not price crude supplied to local refineries at international market rates when the crude is produced domestically.
According to him, the country should distinguish between crude meant for export and crude allocated for domestic refining.
Duke also advocated the commercial exploitation of other products derived from crude oil, saying Nigeria could generate greater economic value by fully utilising its petroleum resources.
He said the focus should move beyond petrol production to other products that could support industrial development and create additional revenue for the country.
The former governor maintained that Nigeria had the resources and capacity to achieve lower energy costs if its crude oil and downstream petroleum sector were properly managed.
Duke had previously criticised the debate surrounding fuel subsidy, arguing that Nigerians could access cheaper petrol if the country maximised the value of its crude oil resources and other petroleum products.
He said reducing energy costs would also have wider economic benefits by lowering transportation and production expenses for businesses and households.
Duke's proposal comes amid renewed debate over domestic crude supply, petrol pricing and the impact of international crude prices on Nigeria's downstream petroleum sector.
He urged the Federal Government to adopt policies that would ensure locally produced crude supports domestic industrialisation while making refined petroleum products more affordable.
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