Petrol prices in Nigeria will be influenced by global factors, local market conditions, and production costs, rather than local production alone.
Smart Opeyemi, an independent petroleum marketer, explained this while discussing why petrol cannot be cheap in Nigeria.
Recently, there has been significant concern in some circles over the rising costs of petroleum products.
This topic has been widely discussed in public because petrol prices strongly impact various aspects of the economy, both large and small.
Many people think that petrol prices should be lower now that Nigeria produces fuel locally through the Dangote Refinery.
However, experts argue this doesn’t apply to Nigeria, even with its unique position as an oil-producing country.
According to The Nation, Opeyemi said that global market forces still play a big role in fuel pricing worldwide.
He said that even though Dangote Refinery is producing locally, the price of crude oil and other production costs will mostly depend on global factors.
Opeyemi also explained that, with the petrol subsidy removed, Nigerians will now pay prices that reflect the full cost of refining, logistics, and distribution.
Some people believe that if independent oil marketers can get fuel from the Dangote Refinery, it will lead to fairer prices, healthy competition, and positive effects on the economy.
The expert believes that while the refinery might help keep fuel available, it doesn’t mean prices will drop. He said petrol prices in Nigeria will still be influenced by global oil prices and local market conditions.
Opeyemi explained that the government’s reforms, including the crude-for-naira initiative, will bring lasting investments to a sector that has long needed them.
He emphasized that these changes will create local jobs and bring other social and economic benefits by reducing the need to import refined petroleum.
In related news, TimesNow.com.ng earlier reported that Rainoil Ltd’s Group Managing Director, Gabriel Ogbechie, warned Nigerians to prepare for market-adjusted petrol prices in the coming months.
The prominent oil industry player said the price adjustments will follow FG’s plan to entirely remove subsidy and fully deregulate the downstream sector.
He, however, noted that the price of petrol will be determined by the rise and fall of crude oil in the international market.
Source: TimesNow.com.ng
