Donald Duke Says Petrol Could Drop to ₦700, Proposes New Refining Model

Former Cross River State Governor Donald Duke has said Nigeria could reduce petrol prices to around ₦700 per litre by cutting crude oil security costs, sourcing domestic crude and adopting a contract-refining model.

Duke made the proposal during an interview with ARISE News on Thursday, blaming high security expenses and deteriorating infrastructure for increasing Nigeria’s crude oil production costs.

He said producing a barrel of crude costs between $12 and $15, but security and infrastructure challenges can push the figure significantly higher.

Duke clarified that his original petrol price proposal was ₦300 per litre, not ₦200. However, he admitted that the target might no longer be achievable because of existing government crude oil commitments.

He suggested that the government buy available Nigerian crude, pay refineries an agreed processing fee and retain the refined products for distribution and sale. He argued that revenue from petroleum by-products could also help reduce petrol prices.

Duke maintained that a pump price of around ₦700 could still be more affordable than prices approaching ₦1,300, although the actual cost would depend on crude availability, refining charges and distribution expenses.

He also proposed colouring petrol to help authorities identify fuel allegedly smuggled into neighbouring countries. Duke argued that stronger border enforcement would be preferable to keeping fuel prices high to discourage smuggling.