A former President of the Nigerian Association for Energy Economics, NAEE, Prof. Wumi Iledare, has said the new price of Premium Motor Spirit, PMS, also known as petrol, is in line with development in the global oil market.
Recall that the Petroleum Products Marketing Company, PPMC, had on September 2 announced a new Ex- depot price of N151.56 for petrol.
Speaking with the News Agency of Nigeria in Abuja on Thursday, Mr Iledare said that going by the prevailing market fundamentals, the cost of petrol should be around N200 per litre in the country.
“The reality on the ground is not pretty at all with respect to what the price ought to be.
“At the current official exchange rate of one dollar to 385, 200 is about right price because of the level of demand driven by population and quality of life.
“Keep in mind that any attempt to invoke subsidising petroleum has unintended consequences,” he said.
Mr Iledare, a professor of Petroleum Economics said that it was unfortunate that the country missed the opportunities when there was lower crude oil price.
“We suggested not to set the price then, but fear of unrest predominate government action then.
“The economy is highly dependent on oil revenue. Salaries are low and not paid.
“It is a double whammy for petrol to go up. But no budget to subsidise, ” he said.
He advised that Nigerians must adjust and government on its part should pump more money to the economy and invoke patriotism
“Nigeria’s exchange rates call for at least N200 per litre in Nigeria.
“In Ghana, a litre is about N325 -N350 per litre of petrol. Like Nigeria PMS consumed are imported, lessons can be learnt from Ghana.
“If Ghana is surviving, we need to learn from them,” he added.