Duke Urges Nigeria to Price Domestic Crude at Production Cost

Former Cross River state governor and presidential candidate of the Peoples Redemption Party (PRP), Donald Duke, has proposed that Nigeria should supply crude oil for domestic refining at its production cost, rather than its international market price.

Duke argued that the proceeds from diesel, aviation fuel, kerosene, and other by-products would reduce the cost of petrol. He stated that Nigeria requires about 300,000 barrels of crude oil daily for domestic consumption out of its estimated production of 1.7 million barrels, leaving the balance available for commercial export.

Duke said that the crude allocated for domestic refining should be priced based on the cost of producing it. 'While we sell oil at $70 or $80 a barrel, the cost of production may not exceed $40 a barrel,' he stated. A barrel has about seven by-products.'

Duke rejected the argument that cheaper petrol would inevitably be smuggled into neighboring countries, saying the government should improve border enforcement instead of making Nigerians pay more.