A financial expert and educator, Kalu Aja, has suggested the condition that would make Nigerians enjoy cheaper Petroleum Motor Spirit, PMS, also known as petrol.
Aja in a post on X noted that the average PMS price is N1027.75, saying it reflects the dollar exchange rate.
The financial educator claimed that if PMS is refined locally it will still be high because crude oil is priced in dollars.
According to him, Nigerians should pray for peace in the Middle East and as well for the US Federal Reserve to reduce interest rates.
He said: “The average PMS price is N1027.75
“This reflects the $ exchange rate. If all the PMS is refined locally, PMS will still be high because PMS (crude oil) is priced in $
“Nigeria has eliminated the inefficient subsidy of NNPC importing PMS whilst owning nonfunctional refineries. Now the mighty dollar stands in our way
“Want cheaper PMS? Pray the US Federal Reserve reduces interest rates, causing $ to fall perhaps. Also, pray for peace in the Middle East
“However, if oil prices fall, Nigeria’s budget deficit will rise. So heads you lose, tails you don’t win
“Solution? Export more byproducts of Oil. This increases the return per barrel, and hopefully, this revenue stream can go to a strategic manufacturing subsidy to reduce the cost of doing business.
“Economics does not give answers; it provides options.”;
