The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to swiftly establish a tailored domestic crude oil pricing framework to enable local refineries to purchase feedstock at fairer, more competitive rates.
In a recent statement issued by its Publicity Secretary, Eche Idoko, CORAN argued that the current pricing approach burdens domestic operators with unnecessary international costs, inflating production expenses and exposing consumers to volatile global fuel prices.
The group proposed eliminating freight and maritime insurance charges from the domestic crude supply formula, given that crude sourced within Nigeria incurs no such expenses.
It drew parallels to how major international benchmarks like Brent and WTI are priced, without added shipping or insurance premiums.
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“Removing these elements would deliver crude to local refineries at realistic domestic prices, substantially cutting feedstock costs,” CORAN stated. This, the association added, would allow producers to offer petrol, diesel, aviation fuel, and other products at steadier and more affordable levels for Nigerian consumers.
The call has gained urgency amid escalating geopolitical risks in the Middle East, especially involving Iran, which continues to drive uncertainty in international oil markets and threaten imported price shocks for Nigeria.
The proposal was a central topic at the 2025 CORAN Refining Summit, where the NUPRC recognised the value of a practical domestic pricing system and pledged to lead ongoing stakeholder discussions toward a consensus framework.
CORAN emphasised that a robust local refining sector backed by equitable crude terms would enhance energy security, curb pump price swings, bolster industrial activity, and safeguard household incomes amid rising energy demands in transport, farming, and manufacturing.
The association renewed its appeal for the NUPRC to accelerate consultations and implement a clear, transparent domestic pricing mechanism to support Nigeria’s refining growth and shield the economy from external disruptions.
