….Fuel Price Should Be Based On Production Cost, Not Global Market
Former Cross River State Governor and presidential candidate of Peoples Redemption Party, PRP, for 2027 election, Donald Duke, has said he would reduce price of petrol to about N300 per litre if elected president.
Duke said this in interview on Channels Television’s Morning Brief while discussing President Bola Tinubu’s economic policies and how he would approach petroleum sector differently if elected in 2027.
Former governor said petroleum products for local consumption should be priced based on production costs rather than international market prices.
“The subsidy regime thing — this whole thing is a scam. I’m going to price petroleum products for local consumption at production costs, not at international market costs,” Duke said.
“I’m giving you production cost of $45, right? The international price — that’s $45, including processing, refining, otherwise, it’s about $30, and you’re selling it back to your own people at hundred and something dollars,” he added.
Duke said high petrol prices were putting additional pressure on Nigerians, particularly low-income earners.
“You don’t want them to breathe, and your people are notably poorest in world. They can’t afford it. Basic minimum wage is N70,000. Your salary will go in just filling tank of fuel,” he said.
Asked what he considered realistic petrol price under his presidency, Duke said he would target about N300 per litre.
“I will try and bring it to about N300. I’ve told you that it sounds so outlandish, but I’ve given you arithmetic,” he said.
Duke explained that his plan would involve allocating part of Nigeria’s crude oil production for domestic consumption while selling remainder internationally.
“Allocate 600,000 barrels if that’s what you consume daily. Allocate that to yourself. The other one million you can sell it,” he said.
Nigeria produces average of 1.68 million barrels of crude oil per day, according to available industry data, while Nigerian Midstream and Downstream Petroleum Regulatory Authority said country consumes about 60.2 million litres of petrol daily.
Duke said his proposed pricing model would help reduce burden of fuel costs on Nigerians and form part of his broader economic policy if elected.
