By Edith Ike-Eboh
Prof. Wumi Iledare, former president, Nigerian Association for Energy Economics (NAEE) stated the brand new worth of Premium Motor Spirit (PMS) aka petrol is according to growth within the international oil market.
Iledare disclosed this in an interview with the News Agency of Nigeria (NAN), in Abuja, on Thursday.
PPMC, the Petroleum Products Marketing Company (PPMC) had on Wednesday, introduced a brand new Ex- depot worth of N151.56 for petrol.
He stated that going by the prevailing market fundamentals, the price of petrol could possibly be as excessive as N200 per litre within the nation.
“The actuality on the bottom is just not fairly in any respect with respect to what the worth must be.
“At the present official alternate charge of 1 greenback to 385, 200 is about proper worth due to the extent of demand pushed by inhabitants and high quality of life.
“Keep in thoughts that any try to invoke subsidising petroleum has unintended penalties,” he stated.
Iledare, a professor of Petroleum Economics stated that it was unlucky that the nation missed the alternatives when there was decrease crude oil worth.
“We advised to not set the worth then, however concern of unrest predominate authorities motion then.
“The economic system is extremely depending on oil income. Salaries are low and never paid.
“It is a double whammy for petrol to go up. But no price range to subsidise, ” he stated.
He suggested that Nigerians should alter and authorities on its half ought to pump extra money to the economic system and invoke patriotism
“Nigeria’s alternate charges name for at the very least N200 per litre in Nigeria.
“In Ghana, a litre is about N325 -N350 per litre of petrol. Like Nigeria PMS consumed are imported, classes might be learnt from Ghana.
“If Ghana is surviving, we have to study from them, ” he added.