Nigerians may soon witness a reduction in the cost of Premium Motor Spirit (PMS), commonly known as petrol, as the Federal Government has reiterated its commitment to the naira-for-crude oil sales arrangement with Dangote Refinery and other domestic processors.

In a statement released Wednesday via its official X account, the Federal Ministry of Finance disclosed that the naira-for-crude initiative—overseen by a technical sub-committee chaired by Finance Minister Wale Edun—will continue indefinitely. The initiative aims to support local refining, enhance energy security, and reduce dependence on foreign exchange in the petroleum sector.

“The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” the statement read.

This announcement helps ease concerns within the oil and gas industry about the stability of petrol pricing, especially amid volatility in global crude markets.

Welcoming the development, National President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described the initiative as a critical step for Nigeria’s economic advancement.

“We commend the President and the Committee for pursuing policies that benefit Nigeria. The naira-for-crude deal is pivotal to the country’s economic trajectory. PETROAN is optimistic about its implementation,” Gillis-Harry stated.

Similarly, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the continuation of the deal would prompt Dangote Refinery to adopt a revised pricing model based on current international market realities and the naira-based transaction framework.

“With this policy in place, Dangote is expected to release a new pricing template soon—likely before the week ends. They no longer have the justification of old stock, as that contradicts best international practices,” Ukadike said.

His comments come amid a notable drop in global crude prices, which fell to a four-year low of around 6 percent on Wednesday.

It will be recalled that on March 19, 2025, Dangote Refinery suspended naira-based petroleum sales following a deadlock in discussions with the government. The pause in implementation led to a spike in local fuel prices.