By Muhammed Saheed
The Chairman of the Major Oil Marketers Association of Nigeria, Mr. Adetunji Oyebanji, has said that the pump price of petrol should be closer to N155 per litre.
Oyebanji, who is the Managing Director/Chief Executive Officer of 11 Plc (formerly Mobil Oil Nigeria Plc), made the statement on Tuesday on CNBC Africa.
His statement reads in part, “However, going forward, we still note that there is still an element of subsidy because when you look at the prices that were posted for the month of August, for instance, NNPC is still retailing petrol at N145 when really the price should be closer to N155.
“If you look at the template the PPPRA has been using in setting prices, you will find that if you just apply even the official exchange rate and Platts for the month of August, prices at the pump should be significantly higher than where there are today.
“Obviously, something is not clear as to what really is happening. We suspect that there may be some issues to do with how margins are being applied to the various operators and the various subheadings within the template.
“So, we will continue to work with the government to try and get clarification on this subject but definitely, it is very clear that there is still an element of subsidy.”