Economist Says Production-Cost Pricing Could Cut Petrol to ₦435–₦687 Per Litre

Petroleum engineer and economist Prof. Izielen Agbon says Nigeria could reduce petrol prices to between ₦435 and ₦687 per litre by pricing locally refined fuel according to production costs rather than import-parity rates. Speaking at a public discussion on fuel prices and subsidy removal, Agbon said the model would factor in domestic crude, refining, transport, distribution and taxes. He argued that using part of NNPCL’s domestic crude allocation for local refining could shield consumers from exchange-rate swings and international product prices. He called for the rehabilitation of government-owned refineries and said NNPCL could become a supplier of last resort to increase competition. Labour and civil society voices at the event also said high petrol prices have worsened transport, food and household costs for Nigerian workers.

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