Owing to these developments, Dr Joseph maintained that ?angote should also consider selling his refined product below the market price to ease the current hardships in Nigeria.
The Petroleum Products Retail Outlets Owners Association of Nigeria, (PETROAN), has claimed that the ?angote Refinery is wrong for insisting their products will be sold at market price.
Speaking when he appeared on a radio station yesterday, the PETROAN’s National PRO, Dr. Joseph Obele, said the cost of production of petrol was now below N600 per litre.
According to him, this was because of the fact that the Federal Government had started selling crude oil to ?angote in Naira. Owing to these developments, Dr. Joseph maintained that ?angote should also consider selling his refined product below the market price in order to ease the current hardships in tge country.
Dr. Joseph further said: “Scholars of oil sectors have done an analysis, and it has shown that the crude for Naira given to ?angote by the Federal Government, cost of production will not go above N600. Although the crude oil he imported is from the international community, the cost of production will not be above N700.
“But it is wrong for him to say his template for him to fix his refinery’s selling price is based on, and tied to how much the international community is selling. And people are saying the dynamics and the effects and the economic systems at the international market and Nigeria are not the same.
According to him, “?angote should not have fixed his price on the international market. He should have fixed his price on cost of production plus the margin.
“International market (price) in a country where you enjoy so many concessions. While he was building his refinery, the concession he was given for foreign exchange was far less than the official rate to the extent that international experts criticised the concessions given to him. So in Nigeria, where inflation is high, where the minimum wage is poor, ?angote is fixing our buying rate for PMS, which is a commodity that every other commodity revolves around. It is wrong for him to say: ‘I templated my price based on the international market”.
Recall that the NNPCL earlier said it had ended its age-long importation of refined petroleum products and is currently purchasing fuel from the ?angote Petroleum Refinery and other local refineries.
NNPC’s Group CEO, Mele Kyari, who disclosed this new development on Monday at the on-going conference of the Nigerian Association of Petroleum Explorationists, (NAPE) in Lagos State, disclosed that the NNPCL would no longer import fuel, as it now buys it from local refineries.
