I don't think it is possible to sell PMS at 500 Naira unless the price of a barrel of crude oil drops and the Naira gets stronger. Let me demonstrate this with some simple calculations. 1 barrel of crude sells for $70. Converting this to Naira at current exchange rate of 1,550 equals 108,500 Naira. 1 barrel of crude oil produces about 170 litres of refined petroleum products (for ease of calculation let's assume this is all petrol, which in reality isn't the case) 1 litre of refined petroleum product cost 108,500/170 = 638.24 Naira. Note that we haven't accounted for cost of refining, cost of distribution around the country and all other associated cost. If cost of 1litre of Petrol from 1 barrel of crude oil is 638.24 Naira (without other cost) how then do we expect it to sell for 500 Naira
If dollar can go less than a thousand naira, then it’s feasible…. I earn in dollar but I don’t even care any longer, even if e fall to 1 naira, people are going through a lot in Nigeria.
I don't think it is possible to sell PMS at 500 Naira unless the price of a barrel of crude oil drops and the Naira gets stronger.
Let me demonstrate this with some simple calculations.
1 barrel of crude sells for $70. Converting this to Naira at current exchange rate of 1,550 equals 108,500 Naira.
1 barrel of crude oil produces about 170 litres of refined petroleum products (for ease of calculation let's assume this is all petrol, which in reality isn't the case)
1 litre of refined petroleum product cost 108,500/170 = 638.24 Naira. Note that we haven't accounted for cost of refining, cost of distribution around the country and all other associated cost.
If cost of 1litre of Petrol from 1 barrel of crude oil is 638.24 Naira (without other cost) how then do we expect it to sell for 500 Naira
If dollar can go less than a thousand naira, then it’s feasible…. I earn in dollar but I don’t even care any longer, even if e fall to 1 naira, people are going through a lot in Nigeria.