The presidential candidate of the Accord Party, Dr. Gbenga Olawepo-Hashim, has said Nigerians should not pay more than ₦605 per litre for petrol under an Accord administration, arguing that the price could eventually fall to as low as ₦200 if Nigeria addresses its production costs and exchange rate.
Hashim said the proposed ₦605 per litre price would be a sustainable market price rather than an artificially subsidised rate, insisting that lowering the cost of petrol would not come at the expense of government revenue or allocations to states and other tiers of government through the Federation Account Allocation Committee (FAAC).
“₦605 per litre is our starting sustainable price for petrol. Nobody will buy petrol above ₦610 under our government. It could be as low as ₦200,” he said.
Hashim, who has consistently opposed the removal of the petroleum subsidy, said the key to reducing petrol prices was not a return to an opaque subsidy regime but a fundamental restructuring of what he described as Nigeria’s distorted petroleum production, pricing and accounting systems.
He described the previous justification for subsidy removal as “accounting magic”, arguing that the country must first establish the actual cost of producing, refining, transporting and distributing petrol before determining whether the government is genuinely subsidising consumers.
“Any time you sell a product above its legitimate cost of production, refining, transportation and insurance, you cannot call the difference between that price and an international benchmark a subsidy loss. That is opportunity cost,” he said.
According to Hashim, Nigeria has often determined petroleum costs by comparing the domestic value of crude oil or refined products with international market prices instead of establishing the actual cost of producing and delivering the products to Nigerian consumers.
He argued that this approach creates the impression that the government is necessarily incurring a loss whenever Nigerians buy petroleum products below an international benchmark.
“A country does not subsidise itself simply because it chooses to use its own resources to provide affordable energy to its citizens,” the presidential candidate said.
Calls For Forensic Audit Of Petroleum Costs
Hashim called for an independent forensic audit of Nigeria’s petroleum cost structure, covering crude oil production, contracting, procurement, refining, transportation, storage, insurance, pipeline operations and distribution.
He said the exercise should establish the actual cost of producing and delivering every litre of petrol to the Nigerian market.
“Show Nigerians the books. Publish the production cost. Publish refinery cost. Publish transportation. Publish insurance. Publish every margin. Let the data speak,” he said.
The Accord candidate argued that Nigeria’s high petroleum costs should not simply be transferred to consumers without first examining the factors responsible for them.
He questioned Nigeria’s relatively high production costs compared with those of other major oil-producing countries, saying contracting practices, procurement, insecurity, operational inefficiencies and possible cost inflation required closer scrutiny.
He said, “Before asking Nigerians to pay more, government must first explain why it costs so much to produce our own oil. If the cost is genuine, show us the evidence. If it is inefficiency, corruption or inflated contracting, fix it.”
According to him, Nigerians are effectively paying twice for inefficiencies in the petroleum sector, first through potentially inflated production costs and again through higher pump prices.
“The Nigerian people should not pay for inefficiency twice. They should not pay for inflated costs inside the system and then be told that the resulting high price is the inevitable consequence of subsidy removal,” he said.
Targets exchange rate of ₦525–₦700 to dollar
Hashim said his proposed petrol-pricing framework would be based principally on two variables: an appropriate production cost and a stable exchange rate.
He said an Accord administration would target an exchange rate of between ₦525 and ₦700 to the US dollar, arguing that exchange-rate stability would significantly influence the naira cost of petroleum-sector inputs and other areas of the economy.
“We will achieve this strictly by ensuring appropriate production cost and appropriate exchange rate,” he said.
He stressed that the proposed reduction in petrol prices would not be financed by cutting government revenue or reducing FAAC allocations.
“The reduction will not be at the detriment of government revenue or below current FAAC. We are not going to make petrol cheaper by making government poorer,” he said.
According to him, the objective would be to reduce the underlying cost of production rather than simply shift the financial burden between government and consumers.
Hashim argued that lower energy costs could stimulate production, reduce transportation and manufacturing expenses, increase household purchasing power and expand the economic base from which government generates revenue.
“Our objective is not simply cheap petrol. Our objective is a productive Nigerian economy in which affordable energy, stronger production and stronger government revenue reinforce one another,” he said.
Petrol Could Fall To ₦200–₦300
Hashim said the proposed ₦200–₦300 per litre petrol price should be viewed as a potential medium-term outcome of correcting Nigeria’s economic fundamentals rather than an arbitrary political promise.
“₦605 is the starting sustainable price. If we get production costs right and achieve the exchange-rate target, the price could come down to ₦200 or ₦300,” Hashim proposed.
He said the policy would also include accelerated domestic refining, greater transparency across the petroleum value chain and measures to eliminate waste and leakages.
Hashim maintained that government intervention in petrol pricing should not automatically be considered illegitimate, provided such intervention is transparent, targeted and tied to measurable economic objectives.
“The issue is not whether government can intervene. The issue is whether government intervention is transparent, productive and accountable. Subsidy should protect Nigerians and the productive economy, not enrich intermediaries,” Hashim said.
He said the debate over petrol pricing should therefore move beyond political slogans and focus on the actual data underpinning production and distribution costs.
He said, “Let the data speak. Tell Nigerians exactly what it costs to produce the crude, what it costs to refine it, what it costs to transport it and what every margin represents. Then we can have an honest conversation about subsidy.”
Hashim said the 2027 election should ultimately be a contest between competing economic models rather than merely competing political personalities.
“Nigeria does not have to choose between affordable petrol and government revenue. We can have both. But we must stop using accounting to hide inefficiency and start using economics to build prosperity.”
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