Vetiva Capital has discovered imperfections in the Department of Petroleum Resources’ estimate that Premium Motor Spirit costs will ascend to N1,000 once the endowment is abrogated.
DPR Director Sariki Auwalu,, expressed at an occasion on the ‘Eventual fate of the Nigerian Petroleum Industry’ in Lagos that the current cost of N162/N163 per liter will ascend to as much as N1,000.
In any case, an expert at Vetiva Capital Joshua Odebisi, said the projection was unreasonable regardless of whether raw petroleum costs came to $100 per barrel.
He said, “Partially when you consider the big picture, we have seen their computations in the past where they said that the siphon cost of petroleum will stretch around N360.
“I think N1,000 is somewhat high, that possibly making the suspicion that raw petroleum costs should top above $100 per barrel, yet I believe that is more than far-fetched and what’s more, there are as yet a couple of different elements that would need to become an integral factor for us to arrive at that level.”
Last month, the Nigerian National Petroleum Corporation’s Group Managing Director, Mele Kyari, showed that without government sponsorships, the expense of gas at the siphon ought to be N256 per liter.
Nigeria spends more than $1bn every year on sponsorship, a sum which the NNPC manager said ought to have gone into foundation.
The DPR pioneer additionally pushed for elective fuel as a support against rising fuel costs, which he said would arrive at N1,000 per liter.