Investment Banker and Accountant Femi Oladehin has suggested that it is time for the government to end the mystery and secrecy surrounding petroleum product pricing in the country.
Oladehin, Senior Partner at Argentil Capital Management Limited, told Newscentral’s Business Edge that Nigerians yearn for transparency to end their frustrations with accessing and acquiring products.
“We are part of a global economy where crude oil prices are well-known. The price of PMS is also well-known because there’s a trading platform where prices are determined daily. The only variable we should be looking at is the additional costs of delivering petrol to the Nigerian market and how that impacts the rest of the price cycle.”
Oladehin noted that while Nigeria is not an island regarding petroleum prices, he emphasised that global prices have remained stable over the last year, so the secrecy around pricing must be the government’s strategy to manage the controversy surrounding whether it is still paying subsidies.
“Prices have largely stabilised within a very tight 10% to 15% band, and when you bring that into the Nigerian pricing regime, there shouldn’t be this level of secrecy to the cost of petrol being a transparent product.” He said.
He acknowledged that, at the current prices, it is apparent that there is still an element of subsidy in the pricing regime and urged the government to stop playing games with numbers and earn the people’s trust instead of trying “to look good.”
Oladehin said the solution to the quagmire is for the authorities to foster transparency and for the country to improve its refining capacity.
“If there is transparency and we improve our refining capacity, it should reduce the pressure on the government to continue paying subsidies, and it honestly isn’t rocket science. We know how much a barrel of crude costs today.”
