The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has revealed that petrol prices could drop below N600 per liter if the naira strengthens to less than N1,000 per dollar.
PENGASSAN President, Comrade Festus Osifo, stated this during the association’s National Executive Council (NEC) meeting held in Lagos on Thursday.
Osifo attributed the high pump prices of petrol to the weak naira, noting that the oil and gas sector operates predominantly in US dollars.
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“If the naira appreciates, Nigerians can expect a significant reduction in petrol prices,” he said.
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He pointed out that the pricing of crude oil allocated to local refineries, such as the Dangote refinery, is pegged to international benchmarks, which are dollar-based.
He warned that without efficient local refining and a stable exchange rate, petrol prices could rise as high as N1,300 per liter.
However, with strategic management and reforms, the country could achieve more affordable energy and sustainable economic development, he stated.
Osifo also bemoaned the recently passed 2025 budget of N49 trillion, stating that it can be likened to $30 billion.
“For us, the 2025 budget is very low and abysmal, we all know what the effect of the Naira devaluation has done to us. N49 trillion is barely $30 billion and $30 billion is not even enough to fix our roads.
“So we are saying the budget is extremely small for a country abundantly blessed with human and mineral resources”.
PENGASSAN also raised concerns about Nigeria’s struggling power sector, citing frequent grid collapses and systemic failures.
“In 2024 alone, the country experienced 12 grid collapses, we can’t even generate enough to power our homes even though billions of dollars have been invested in it with power generation stuck between 3,000 and 4,000 MW” he stated.
Osifo attributed these challenges to the absence of skilled and knowledgeable professionals in key positions within the Ministry of Power, the Nigerian Electricity Regulatory Commission (NERC), and related agencies. He urged the federal government to prioritise merit-based appointments to ensure effective leadership in the sector.
“The power sector is highly technical. Without capable individuals in critical positions, we cannot achieve sustainable solutions,” Osifo said.
He however commended the federal government’s efforts to decentralise the power sector but stressed the need for strategic leadership to complement these reforms.
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Update: In 2025, Nigerians have been approved to earn US Dollars as salary while living in Nigeria.
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