By BANNERNEWS Reporter, Calabar
A chieftain of the African Democratic Congress (ADC), Mr Ekpo Okon, has proposed the sale of crude oil to domestic refineries at discounted rates as a way of reducing the price of petroleum products and easing the cost of living in Nigeria.
Okon, a former chairman of the Peoples Democratic Party (PDP) in Cross River State and former governorship APC running mate, said Nigeria could support local refining without returning to the subsidy regime associated with imported petroleum products.
Speaking during an interview, he argued that the country’s crude oil resources could be deployed to make locally refined petrol more affordable to Nigerians.
He said the government could sell crude oil to the Dangote Refinery and other domestic refineries at a reduced price, enabling them to produce and distribute petroleum products at lower rates.
“Our position is that we should not subsidise imported petroleum products, but rather support local production,” he said.
Okon explained that crude oil could be sold to local refiners at about $50 per barrel when the international market price was around $100, allowing the refineries to pass the cost advantage to petroleum marketers and ultimately consumers.
He said the arrangement would help reduce the burden of rising transportation costs, which he noted had also contributed to increased prices of food and other commodities.
The ADC chieftain acknowledged that the former petrol subsidy regime was undermined by corruption, including alleged fraudulent claims for petroleum products that were never delivered.
However, he maintained that the availability of domestic refining capacity presented an opportunity for Nigeria to adopt a different approach by supporting local production.
Okon also criticised the Federal Government’s handling of the economy, questioning the use of funds saved from subsidy removal and the country’s increased borrowing.
He said the ADC would take its economic proposals to Nigerians during its campaign, urging voters to examine the effects of government policies on their livelihoods.
