Petrol Can Sell for N605/Litre, Current Price Inflated by Govt — Olawepo-Hashim
Accord Party presidential aspirant, Gbenga Olawepo-Hashim, has challenged the Federal Government’s petrol pricing framework, insisting that Nigerians could be paying about N605 per litre if the cost of domestic crude supply is properly accounted for.
Olawepo-Hashim, who spoke on Channels Television’s Politics Saturday , described the government’s subsidy argument as “accounting magic,” contending that the present pump price reflects an inflated valuation of crude supplied to the domestic market.
He said the controversy surrounding petrol pricing should focus on how the government calculates the cost of crude rather than simply on whether subsidy exists.
According to him, data from the Nigerian National Petroleum Company Limited, NNPCL, puts Nigeria’s crude production cost at about $30 per barrel.
He proposed an additional $15 margin, $5 for refining and another $7 for transportation and insurance, putting the total estimated cost at about $57 per barrel.
Using an exchange rate of N1,400 to the dollar, Olawepo-Hashim said his calculation translated to about N501 per litre of petrol.
He, however, put the possible pump price at about N605 per litre after allowing for other applicable costs, insisting that petrol need not remain at its current high price.
“The truth of it is that the price is currently inflated. By who? By the government,” he said.
Olawepo-Hashim’s position effectively puts the government’s domestic crude pricing policy at the centre of the petrol-price debate, arguing that a review of the framework could bring significant relief to consumers.
