Dr. Olisa Agbakoba (SAN), Ex-Chairman of the Nigeria Bar Association (NBA), has proposed a strategy for cutting the current fuel cost in half.
Agbakoba advocates that a significant price reduction could occur if the Nigerian National Petroleum Corporation (NNPC) opts to sell crude oil in naira to the country’s modular refineries.
In a conversation with Vanguard about fuel pricing, Agbakoba urged the Federal Government to forge a national strategy for domestic consumption of crude oil.
He elaborated that if the NNPC maintains its sales at the international market price, fuel prices will invariably stay high.
His words were, “I can suggest a way for us to slash the price of PMS by half, instantly. Achieving this would necessitate the NNPC to trade crude oil to all the modular refineries within our borders using nairas. Why is the NNPC marketing our crude oil to Nigerian modular refineries in dollars? We should frame a national blueprint for local crude oil utilization.
“The price could plunge to N300. I dare the NNPC to give it a shot; the price will fall. However, if it’s sold at the global market rate, how are those marketing it locally supposed to purchase forex and then trade in Naira? Their only option is to elevate the price! This is the crux of the issue. For the government, understanding the correct time and method to make decisions that benefit the populace and mitigate hardship is crucial.”
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