Accord Party chieftain, Gbenga Olawepo-Hashim, has argued that petrol should sell for about ₦605 per litre in Nigeria, challenging the Federal Government’s current approach to fuel pricing.
Olawepo-Hashim made the claim while appearing on Channels Television’s Politics Today, where he questioned the way domestically produced crude oil is priced for Nigerian refineries.
According to him, the high cost of petrol is partly driven by the government’s pricing structure for domestic crude. He said data attributed to the Nigerian National Petroleum Company Limited (NNPCL) put crude production costs at approximately $30 per barrel.
He explained that adding a $15 margin, about $5 for refining and another $7 for transportation and insurance would bring the estimated cost to roughly $57 per barrel.
Using an exchange rate of ₦1,400 to the dollar, Olawepo-Hashim said his calculation translates to about ₦501 per litre. He proposed ₦605 as a pump price after including an additional ₦100 energy tax to support alternative energy development.
The Accord Party figure also rejected the description of Nigeria’s previous petrol pricing arrangement as a conventional subsidy, describing the subsidy debate as “accounting magic.”
He maintained that crude supplied to domestic refineries should not automatically be priced at the same international benchmark, arguing that Nigeria should prioritise affordable energy for its citizens.
Olawepo-Hashim further called for greater transparency in determining the actual cost of producing crude oil in Nigeria.
COURTESY: Ladyenlightened
