CHAIRMAN, D-8 Business Forum and president, Sapele Chamber of Commerce, Industry, Mines and Agriculture, Sapele, Delta State, Prince David Iweta, weekend, revealed how the Federal Government can sell petrol at N20 per liter and also get rid of the crisis of fuel subsidy removal.
He suggested that the Federal Government should peg the pump price of petrol at N65 per liter in 2012, and progressively at N20 per liter by 2015.
His words, “The Chamber of Commerce wish to inform the Government of Nigeria and the entire people of Nigeria that the pump price of N20 per litre is very possible by 2015 if government pursues a committed and progressive monetary policy, which should be anchored around Central Bank of Nigeria”.
According to him, “The principal factor that determines the price of imported commodity is the exchange rate of any economy, particularly against other major international currencies. It is, therefore, achievable to attain a price of N20 per litre of petrol by 2015 if our monetary policy is given the desired attention by making the dollar to firm around N10 to the US$1”.
“As in the case of South Africa’s Rand that exchanges for about R8 to US$1, be it noted that the principal factor pushing the pump price of PMS to all high N141 per litre is the high exchange rate of the Naira at N160 to the US$1.
“The Federal Government is in a very good position in attract foreign exchange inflows in the region of US$350billion yearly from sources other than proceeds from export of crude oil and gas, the saving and retention of about US$16billion from the forex expended on importing petroleum products as presented by the Central Bank Governor during the Town hall debate in Lagos would be saved when Nigeria can refine its petrol products need on or before 2015, as funded US$8billion by the CBN and US$8billio by commercial banks respectively.
“This already is 40 per cent of the nation foreign exchange. It is very practicable to attract US$8billion annually by making it mandatory that all imported fuel into Nigeria be freighted/transported by indigenous tanker owners and by that, the foreign exchange required to pay cost of freight to foreign vessel owners will be retained in Nigeria”.
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