By Aliu Akeem
Amid rising fuel prices in Nigeria, currently exceeding N1,000 per litre, Tonye Cole, a prominent oil and gas expert, has provided insight into the possibility of a price drop to N700 per litre.
During a recent interview on Channels Television’s Politics Today, Cole outlined the complexities hindering significant price reductions despite ongoing efforts, such as the reactivation of the Port Harcourt Refinery.
Cole, a former APC governorship candidate in Rivers State, noted that the success of such initiatives depends on more than operational refineries. “There has to be a concise and dedicated policy of ensuring that there is the manufacturing of critical fuel components so that Nigeria does not need to import those pieces of machinery,” he said. He emphasized that continued reliance on imported parts, such as turbines and other machinery, sustains a foreign exchange burden that affects fuel pricing.
The recently restarted Port Harcourt Refining Company (PHRC), managed by the Nigerian National Petroleum Company Limited (NNPCL), is expected to process crude oil locally, aiming to reduce the dependence on imports.
However, Cole argued that full benefits would only materialize if domestic production extends beyond crude oil to include critical tools and equipment necessary for refinery maintenance and expansion.
Challenges in Achieving a Sustainable Fuel Price Drop
One major factor preventing the realization of a N700 per litre fuel price is Nigeria’s heavy reliance on imported materials for its oil industry. Cole explained, “As long as we are still importing turbines, bolts, screws, and other components, the costs will remain high.” Furthermore, the nation’s foreign exchange volatility complicates efforts to stabilize prices, as fuel importation costs remain linked to fluctuating exchange rates.
Adding to this perspective, Shehu Sani, a former senator, has praised NNPCL’s efforts to resume operations at the Port Harcourt refinery but stressed that this progress must translate into lower prices for ordinary Nigerians. He urged policymakers to address systemic inefficiencies and ensure that the refinery’s contributions benefit the broader population.
Independent Petroleum Marketers Association of Nigeria (IPMAN) has also commented on the matter. While acknowledging rising operational costs, IPMAN has reassured Nigerians that current pricing will likely remain stable. However, industry insiders caution that achieving significant price reductions will require long-term structural reforms in Nigeria’s oil and gas sector.
Fuel prices remain a hot topic in Nigeria, with the government’s removal of fuel subsidies earlier this year leading to public outcry. Despite the potential of local refining to mitigate costs, experts like Cole suggest that tangible results may take years to achieve without deeper policy changes and investments in domestic production infrastructure.
