Oando CEO Wale Tinubu in a recent interview in Lagos commented on a Nigerian government cap on petrol prices at below-market costs that has caused many private retailers to stop imports. This has left the state-owned Nigerian National Petroleum Corporation to handle supply and effectively subsidise fuel for Nigerians.
“It’s not popular to increase petrol prices,” the CEO said. “The reason we don’t have a country that is exporting petroleum products is because of subsidies. “Our refineries were never repaired because they never had enough cash flow to fix them. That’s because they were always selling product at a discount.”
Nigeria restricts pump prices to 145 naira a litre (40 US cents). That makes the country — a member of the Opec cartel — one of the 10 cheapest places in the world to buy petrol, according to GlobalPetrolPrices.com.
Source: Business Day South Africa