Gov Makinde Says Crude Oil Supply To Local Refineries Should Be Cheaper Than Exports
The Allied Peoples Movement (APM) Presidential Candidate, Oyo State Governor’s Seyi Makinde, has rejected calls for a return to petrol subsidy, proposing instead that crude oil supplied to Nigerian refineries should be priced more affordably.
Makinde said the approach would reduce the cost of petrol for Nigerians without returning to what he described as the old subsidy system.
He made the remarks on Monday while speaking at the commissioning of the APM presidential campaign office in Abuja, where he outlined elements of his “Reset Nigeria” agenda.
Makinde questioned why crude oil supplied to refineries in Nigeria should be priced as though it had been imported from abroad.
According to him, Nigeria’s status as an oil-producing country should be reflected in the price at which crude is supplied for domestic refining.
He argued that any benefit from Nigeria’s crude resources should be built into the petroleum pricing system from the beginning rather than introduced through interventions at the petrol pump after other costs and inefficiencies have accumulated.
The Governor stressed that his proposal should not be interpreted as an attempt to restore the former petrol subsidy regime.
Instead, he advocated a pricing framework in which locally produced crude supplied to domestic refineries is made available at a price that can help lower the final cost of refined petroleum products.
He also called for greater transparency throughout the petroleum value chain, from crude production and domestic allocation to refining, transportation, distribution, taxes and retail margins.
Makinde’s position comes after former Vice-President Atiku Abubakar, who is also seeking the presidency in 2027, pledged to restore fuel subsidy if elected.
Atiku has argued that reinstating the subsidy would help reduce the financial burden created by the removal of the policy in 2023.
President Bola Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, a move that resulted in a sharp increase in petrol prices and contributed to higher transportation and living costs.
Makinde, however, said the focus should instead be on addressing the pricing structure that determines the cost of petrol.
The APM Presidential Candidate said Nigerians should be able to understand how the final price of petrol is determined.
He argued that citizens should know what they are paying for, who receives payments across the value chain and where inefficiencies are increasing the eventual pump price.
Makinde said his proposed Reset Nigeria agenda would seek to make government decisions and the use of public resources more transparent and accountable.
Addressing concerns about the strength of his presidential campaign, Makinde said he had previously faced doubts when he contested the Oyo State governorship.
He argued that political observers who underestimate his campaign are also underestimating millions of Nigerians who want changes in the way the country is governed.
The Governor called on Nigerians to participate in his proposed “Reset Nigeria” conversation by contributing ideas and challenging policy proposals ahead of the 2027 election.
Makinde’s proposal represents a different approach to reducing petrol prices from a conventional fuel subsidy.
Rather than having government compensate suppliers or consumers for part of the cost after the pricing process, his proposal focuses on the upstream cost of crude supplied to domestic refineries.
If implemented, such a framework would require clear rules on domestic crude pricing, refinery costs, transportation, taxes, margins and other components that determine the final pump price.
For now, the proposal remains a campaign policy position, not an existing federal government policy.
