Optimism and hope have led to speculations from some quarters that the price of fuel would settle at below ₦200, when things finally take shape in Nigeria.
Unfortunately, the proponents of these speculations, just like their believers have failed to take facts and trends into consideration.
At the moment, there is nothing on the horizon that shows that fuel price will come crashing anytime soon.
Nigeria is about the most endowed nation in Africa, and one of the highest crude oil producers on the continent.
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Sadly, Nigeria has not developed capacity to the point that it could refine the crude oil she produces.
All refineries in the nation are in a bad shape.
This situation now forces the nation to import, relying hugely on what the international market price is.
In what could be described as an explainer, Major Oil Marketers Association of Nigeria (MOMAN) says, the price of fuel cannot go below ₦200 per litre, even if the refineries are revamped.
MOMAN took this position and tried to explain to Nigerians why they said so.
REASONS FUEL CANNOT SELL BELOW ₦200
One of the factors responsible for the skyrocketing price of fuel in Nigeria is the non-functioning refineries.
Nigeria is paying heavily to refine and import a product she has in abundance simply because the nation’s refineries are moribund.
Another factor in this matter is the exchange rate of dollar to the Naira, which is directly affecting the price of fuel.
As long as the dollar to Naira exchange rate keeps going up, the price of fuel per litre would keep going up in Nigeria, considering that our naira exchange rate is pretty low.
The scarcity of dollar is another factor. It has contributed to the constant upward slope of the price of fuel.
Russia used to be the highest supplier of fuel in Europe but since the ongoing Russian/Ukraine war began, Russia has cut supply.
Solution
A former chairman of MOMAN, Tunji Oyebanji, has suggested that fuel price can reduce in Nigeria if the dormant refineries are repaired.
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He suggested that Nigeria should not depend on the Dangote refinery but repair the dormant refineries and stop wasting money on importation.
