Petrol should cost N300, subsidy may gulp N2t this year – Rainoil boss

The landing cost of petrol in the country has increased to N300, the Group Managing Director of Rainoil Limited, Dr. Gabriel Ogbechie, has said.

Ogbechie, who spoke on Sunday, said following this development, Nigeria may spend N2 trillion on petrol subsidy this year if the current situation persists.

The GMD spoke on Sunday at the Nigeria History Series of the Centre for Values in Leadership.

The theme of the summit was: “Indigenous participation in the downstream oil and gas sector.”

It was moderated by Prof. Pat Utomi.

Ogbechie said the increase in landing cost was largely due to the exchange rate of the Naira to the Dollar.

He said: “I wonder if there is any other sector of the economy that is as regulated as the downstream.

“The biggest elephant in the room today as far as the downstream is concerned is the failure, so to speak, of the government to deregulate the downstream – fixing the price at which petroleum products are sold, I believe, is very seriously harmful to this economy.”

SOURCE: theeagleonline.com.ng

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