A former chairman of the Independent Petroleum Marketers Association (IPMAN) has stated that petrol prices will drop to N600 per litre
The program will see the NNPC sell crude oil and other refined petroleum products to local refineries in naira
Premium motor spirit, better known as petrol is expected to sell below N600 at the commencement of the federal government’s crude-for-naira initiative. …CONTINUE READING
This assertion was made by Dr. Joseph Obele, the former executive chairman of the Independent Petroleum Marketers Association (IPMAN) in Rivers State, who was on a television interview with News Central TV.
It would be recalled that a few months ago, the Federal Executive Council led by President Bola Tinubu approved the sale of crude oil to local refineries in naira and the purchase of petroleum products in naira.
The ministry of finance hinted that the sale of crude oil and refined petroleum products in naira officially commenced on October 1, 2024.
Petrol price could drop
Giving his position on the crude-for-naira initiative, Obele insists that the initiative will ease some of the components of petrol pricing.
Obele said: “The selling rate of PMS right now is a combination of seven components. So going by this Naira-for-crude agreement signed by between NNPC and Dangote Plc, I am saying four amongst the seven components will be eliminated.
And any cost element that has been eliminated, further cause a reduction to the unit price of any commodity. From my analysis, PMS will be selling below N600 when this naira-for crude oil (policy) commences.”
Political and African Affairs analyst Lanre Toluhi disagreed with Obele about a possible reduction in petrol pump prices unless it is accompanied by government subsidy
