As global oil prices spike due to tensions between the United States and Iran, local refiners in Nigeria are urging the Federal Government to abandon the use of international benchmarks for crude supplied to domestic refineries.

They argue that relying on prices like Brent crude inflates costs and undermines the viability of local refining.

Eche Idoko, spokesperson for the Crude Oil Refiners Association of Nigeria (CORAN), said the group has long advocated for a pricing system tailored to Nigeria’s market. “Crude sold to local refineries should reflect domestic realities, not global benchmarks. Using Brent means that international factors influence prices here, which isn’t fair for local operations,” he said.

Idoko added that adjusting the pricing framework could lead to cheaper petrol for Nigerian consumers. He also called for the suspension of certain terminal charges imposed by government agencies, explaining that while the fees may seem minor, they significantly affect profit margins in refining.

The CORAN representative emphasized that transparency in crude pricing is crucial. “If a refinery pays $110 per barrel, there should be clarity on how that figure is reached,” he noted, stressing that local refineries should not bear costs unrelated to domestic supply, such as transport risks through the Strait of Hormuz.

Idoko also highlighted the importance of steady crude supply for modular refineries, which struggle to break even when feedstock is inconsistent or overpriced. He said increased local crude availability would improve profitability for refiners and generate more revenue for the government through taxes and levies.

Recent reports indicate Nigeria’s oil production has risen to around 1.8 million barrels per day, prompting refiners and labor groups to demand better access to crude and lower fuel prices. Idoko assured that CORAN would continue advocating for more domestic supply to support both operational efficiency and financial sustainability of local refineries.