Makinde To Present New Petrol Pricing Formula Amid Fuel Subsidy Debates

The Governor of Oyo State, Seyi Makinde, has called for a fresh look at how petrol prices are fixed in Nigeria, saying the ongoing argument over fuel subsidy is missing the bigger issue.

The 2027 presidential candidate of the African People’s Movement (APM) made the call in the September edition of his newsletter, The Business of Governance, uploaded on Friday, Naija News reports.

According to Makinde, the key question should not be whether petrol subsidy should return or remain removed, but whether Nigeria is using the right pricing system for an oil-producing country.

Makinde said Nigerians deserve to know exactly how the price of petrol is arrived at and what they are paying for.

“We are asking the wrong question. The more important question is: what is the right pricing framework for an oil-producing country like Nigeria?” he said.

He said such a framework should clearly show the benchmark used for crude oil prices, refining costs and margins, exchange rate, transportation and distribution expenses, taxes and levies, among other factors.

The governor said making these details clear would allow Nigerians to properly understand why petrol costs what it does at filling stations.

Makinde also kicked against the argument that petrol prices should be kept high to discourage the smuggling of petroleum products to neighbouring countries.

He said Nigerians should not be forced to pay more because the government has failed to properly secure the nation’s borders.

“We should also reject the argument that Nigerians must pay more for petroleum products simply to eliminate the price difference that makes smuggling into neighbouring countries profitable.

“Nigerians should not be made to bear the cost of government’s inability to secure its borders,” he said.

The governor said the fuel debate should move away from the simple question of whether subsidy should be restored or not.

He argued that the real issue should be whether the current pricing system is fair to Nigerians, especially since the country is blessed with crude oil.

“The petroleum question should therefore not simply be whether subsidy should return or remain removed.

“It should be whether the pricing system we are using is the right one for Nigeria and whether it allows Nigerians to derive a fair benefit from the natural resources they own,” he said.

Makinde added that he would unveil an alternative petroleum pricing framework in the coming weeks for Nigerians to examine and assess.