The CEO Of Energy Transition Group of Nigeria Gas Association, Olabode Sowunmi has alleged that calling for a reduction in fuel price to N200 per liter makes sense but it is not realistic. Hs highlights the disconnect between the desired price and the actual cost of production.
He asked a rhetorical question on who will bear the remaining three-quarters of the cost if the price is reduced to one-quarter. He emphasizes that the price will not disappear, and someone has to take on the cost. He explains further that a fair price is not necessarily a cheap price, but rather one that reflects the actual cost of producing the product. He argues that Nigeria has not had honest discussions about the genuine cost of producing petrol, leading to unrealistic expectations about pricing.
He said in an interview with Channels TV From 10:07, ”A fair price is not necessarily a cheap price. A fair price is a price that is reflective of the cost of producing the product. What has happened with us is that we have not had honest and sincere discussions about the genuine cost of producing the final product of petrol in Nigeria. And it is because it has been available as a product of the state over the years.
There are groups that has called for a reduction of fuel price to N200 per liter. The reduction of fuel price to N200 per liter makes sense but it is not realistic. Because if a product is costing so much and you are asking that it be reduced to one quarter of the price, what about the other three quarters. The price is not going to disappear into thin air, somebody has to take that cost but who is going to take that cost? So these are fundamental questions that logical people ask.”….View_More