Nigeria's Petrol Price Could Drop to N200/Litre Without Hurting Government Revenue, Says Presidential Candidate

Presidential candidate for Nigeria's Accord Party, Dr. Gbenga Hashim-Olawepo, has presented a bold vision for the nation's energy sector, asserting that petrol prices could plummet to as low as N200 per litre.

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N605 per litre is our starting sustainable price for petrol. Nobody will buy petrol above N610 under our government. It could be as low as N200.

He argues this reduction is achievable without diminishing government revenue or Federation Account Allocation Committee (FAAC) allocations. Hashim-Olawepo's plan hinges on reducing the cost of petroleum production and stabilizing the exchange rate, a stark contrast to the current reliance on what he terms an "opaque subsidy regime."

Hashim-Olawepo, a vocal opponent of the recent fuel subsidy removal, questioned the justification for the price hike. He described the previous rationale as "accounting magic," suggesting that comparing domestic costs to international benchmarks offers a misleading picture. He emphasized that using Nigeria's own crude resources for affordable domestic energy should not automatically be labeled a "subsidy loss."

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Any time you sell a product above its legitimate cost of production, refining, transportation and insurance, you cannot call the difference between that price and an international benchmark a subsidy loss. That is opportunity cost.

To substantiate his claims, Hashim-Olawepo demanded an independent forensic audit of the entire petroleum value chain. This audit, he stated, should scrutinize every aspect from crude oil production and refining to transportation, storage, insurance, and distribution. "Show Nigerians the books. Publish the production cost. Publish refinery cost. Publish transportation. Publish insurance. Publish every margin. Let the data speak," he urged.

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Show Nigerians the books. Publish the production cost. Publish refinery cost. Publish transportation. Publish insurance. Publish every margin. Let the data speak.

Furthermore, he raised concerns about Nigeria's comparatively high oil production costs. Hashim-Olawepo called for investigations into contracting practices, procurement, insecurity, operational inefficiencies, and potential cost inflation. "Before asking Nigerians to pay more, the government must first explain why it costs so much to produce our own oil. If the cost is genuine, show us the evidence. If it is inefficiency, corruption or inflated contracting, fix it," he demanded.

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Before asking Nigerians to pay more, the government must first explain why it costs so much to produce our own oil. If the cost is genuine, show us the evidence. If it is inefficiency, corruption or inflated contracting, fix it.