Nigeria Should Price Domestic Crude at Production Cost: Donald Duke

Former Cross River state governor and PRP presidential candidate Donald Duke has argued that Nigeria should price domestic crude at its production cost rather than international market prices. He believes this would make petrol more affordable for Nigerians.

Duke made the argument during an interview in Abuja, citing the estimated 1.7 million barrels of crude oil produced daily by Nigeria. Out of this amount, about 300,000 barrels are allocated for domestic refining. According to Duke, these 300,000 barrels should be priced based on their production cost.

He explained that while international market prices may range from $70 to $80 a barrel, the actual cost of production is around $40 per barrel. This would result in a significant reduction in petrol costs.

Duke also rejected the argument that cheaper petrol would be smuggled into neighboring countries, suggesting that the government could improve border enforcement or dye the petrol with a distinctive color to prevent smuggling.