How Petrol Can Sell For N300 Per Litre 

Former President of Nigeria Bar Association (NBA), Dr. Olisa Agbakoba, SAN, has said Premium Motor Spirit (PMS) also known as petrol can sell for N300 per litre.

Agbakoba in an interview with Vanguard queried the reason the governing body of petroleum products, NNPCL will trade crude oil to local refineries in foreign currency.

He said if they adopt the system of trading Brent in Naira, the price will drop to N300.

In his words, “I can give an idea of how to reduce the price of PMS today by half. To achieve that, NNPC should sell crude to many modular refineries in the country at a naira price. Why should NNPC sell our crude oil to Nigerian modular refineries in dollars? We must set aside a national crude oil scheme for local consumption.

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“The price will drop to N300. I dare NNPC to try it; the price will drop. But if you sell it at the international market rate, how will those who are selling it locally source forex to buy and thereafter sell in Naira? They just have to jack up the price! That is the problem. It is important that the government understands how and when to make the right decision to help people and alleviate suffering.”

When asked if the outcome will not bring back subsidising the product, he asserted, ‘no’!

He said, “Every country has a policy that if you are selling something to your people, it is not a subsidy. It is just a local price. The fact that it can be sold internationally at a higher price does not mean you will sell your local produce locally at an international price. I think that is part of the problem.

“That is not a subsidy; rather, it is a national government decision to set aside a domestic crude reserve of between 400,000 and 500,000 metric tons for local consumption and to be sold locally.”