Fuel Subsidy Is Pure 'Accounting Magic', Petrol Should Sell at N501 – Olawepo-Hashim

The fundamental crux of Olawepo-Hashim’s critique rests on a vital economic principle: international crude pricing reflects foreign opportunity cost, which should not automatically dictate the cost structure for energy consumed locally. Major oil-exporting nations like Saudi Arabia and Kuwait do not subject their domestic energy consumers to international spot market volatility in the aggressive manner currently practiced in Nigeria.

"You cannot price your local products at international prices," Olawepo-Hashim emphasized, calling for an immediate public audit of production overheads across upstream operations. Unconfirmed accounts and industry observations suggest that potential over-invoicing and opaque accounting practices within the domestic supply chain require rigorous parliamentary inquiry to establish the actual cost borne by taxpayers.

The Editor's View & Strategic Analysis: While complete market deregulation remains vital for attracting long-term private capital into energy infrastructure, the ongoing practice of tying domestic crude allocations strictly to foreign currency rates directly exacerbates foreign exchange pressure on the Naira. This structural feedback loop continuously imports inflation into transportation, agriculture, and household goods.

If the Federal Government intends to deliver sustainable economic stabilization and cushion macroeconomic shocks on citizens, policy makers must critically re-examine the pricing mechanics governing domestic crude supplied to local refineries. Transparent cost-accounting is not merely a political debating point; it is a critical requirement for defending monetary stability and restoring purchasing power across the nation.