Falana Urges Immediate Petrol Price Cut and Local Refining Boost
Senior Advocate of Nigeria Femi Falana has urged the Federal Government to immediately reduce the price of petrol. In a statement issued on October 4, 2026, on behalf of the Alliance on Surviving Covid 19 and Beyond (ASCAB), Falana called on the Nigerian National Petroleum Company Limited (NNPCL) to refine the 450,000 barrels per day from Nigeria’s equity crude in local refineries and sell the product at an affordable price to Nigerians.
Falana highlighted that the ongoing conflict between the United States and Iran has disrupted global crude oil supplies, pushing prices above $100 per barrel. This disruption has placed Nigerian consumers in a difficult position, especially since the country’s refining capacity has been neglected.
Professor Izielen Agbon, a U.S.-based petroleum expert, presented findings at an ASCAB seminar, arguing that Nigeria’s fuel pricing methodology is flawed. He criticized the Import Parity Price method, which assumes crude oil is produced and refined overseas, leading to artificially high fuel prices. Instead, Agbon proposed adopting the Production Cost Pricing (PCP) method, which would eliminate the need for fuel subsidies and make petrol more affordable.
According to Agbon, the cost of producing one barrel of crude oil in Nigeria ranges from $31 to $48, compared to the global average of $12. Despite these elevated costs, he calculated that the pump price for petrol should be between N435 and N687 per litre, based on an exchange rate of N1333/$1. Falana also noted that other countries, such as members of the G7, have taken steps to stabilize fuel prices by releasing emergency reserves.
Falana emphasized that Nigeria’s four refineries have been left in disrepair, despite the country’s status as a leading oil producer. He accused the NNPCL of fraudulently announcing the resumption of crude oil processing at the Port Harcourt and Warri refineries in December 2024. Falana urged the government to take immediate action to reduce petrol prices while efforts are made to restore the refineries.