Petrol is one of the most commonly used commodities in Nigeria and, as such, has a direct and indirect impact on the citizen’s cost of living.
From transportation to industrial use to power generation both at home and work, and so on, petrol is a valuable product for every Nigerian.
An increase in the price of this product will cause immediate inflation, and vice versa.
As a result, Nigerians will give anything to have the price reduced from the current price.
The Crude Oil Refinery Owners Association of Nigeria says the pump price of petrol may crash to as low as ₦300 per litre.
However, this may only be possible if indigenous producers and operators of modular refineries in Nigeria, such as Dangote, begin operation.
In an interview with Punch, the publicity secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN) said the production of PMS in mass will reduce pump prices.
“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians.
How Petrol Price Can Drop
“If we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure you that we should be able to buy PMS at ₦300/litre as the pump price.
Why make Nigerians buy it at almost ₦700/litre when you know that if you allow refineries to work, the price will come down?
Is it because you want to satisfy the global refiners abroad that are making so much from us?
We were selling diesel for ₦1,700 to ₦1,800/litre, but as soon as Dangote refinery started production, he brought down the price to ₦1,200/litre.
What other proofs do you need?As I speak to you now, there is every tendency that, before December, diesel prices will drop further.
The only reason why diesel is not doing below ₦1,000/litre is because of our exchange rate.If the exchange rate drops, diesel will drop below the ₦1,000/litre price.
Also Read: Why Your Petrol Disappears In Your Tank
“Now the exchange rate concern is because Dangote imports crude.
“If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”
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