Donald Duke urges Nigeria to price domestic crude at production cost

Donald Duke, former Cross River State governor and presidential candidate for the Peoples Redemption Party, has proposed a new strategy to reduce petrol prices in Nigeria. Speaking in Abuja, Duke urged President Bola Tinubu to supply crude oil for domestic refining at its actual production cost rather than the prevailing international market price.

Duke noted that Nigeria produces approximately 1.7 million barrels of crude oil daily, with roughly 300,000 barrels required for domestic use and 1.4 million barrels available for commercial export. He argued that by pricing the domestic allocation based on production costs—which he estimated could be as low as $40 per barrel compared to market prices of $70 or $80—and selling other by-products like diesel, aviation fuel, and kerosene at commercial rates, the government could lower petrol costs to between N200 and N300 per litre.

His comments come amid ongoing debates regarding fuel subsidies and the management of national resources.