Former presidential spokesman Dr. Doyin Okupe has called on the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers to avoid actions that could cast President Bola Ahmed Tinubu in a negative light......See Full Story>>.....See Full Story>>
In a statement on Friday titled “Dangote Refinery, NNPCL, Oil Marketers, and the Voodoo of PMS Pricing,” Okupe urged oil industry stakeholders to consider the economic challenges faced by Nigerians.
He suggested that the current approach to Premium Motor Spirit (PMS) pricing could create an impression that the government, which no longer directly controls petroleum prices, is to blame for price hikes, potentially tarnishing the president’s image.
Okupe expressed concerns over the lack of transparency in determining fuel prices, describing it as “a national embarrassment.”
He noted that the Free On Board (FOB) price of PMS at Rotterdam was $0.541 per liter, equivalent to about N927.82 at an exchange rate of N1,715 to $1.
He further explained that with a landing cost of N978 per liter in Lagos, locally refined PMS should benefit from reduced freight costs, which save approximately N85 per liter.
Consequently, Okupe argued, “No local refinery should sell above the FOB price at Rotterdam, minus freight savings of N85, which totals N842.83 per liter.”
The former Director-General of the Peter Obi 2023 Presidential Campaign Council, Okupe challenged NNPCL, the Dangote Refinery, and oil marketers to dispute his calculations.
Recall that NNPCL recently increased the price of petrol just three weeks after a previous hike.
The latest adjustment raised the pump price to N1,060 per liter in Abuja, up from N1,030, while in Lagos, the price increased from N998 to N1,025 per liter at NNPCL outlets.