*Says current subsidy structure not benefitting Nigeria’s poorest*Advocates evidence-based palliatives to cushion impact
Price Waterhouse Coopers (PwC) has argued that in-country crude oil refining may not significantly reduce petrol prices because the costs of haulage, insurance and associated cost of importation do not constitute the most significant component of cost across the value chain.
In a report released by the global organisation which offers clients various professional business services, including accounting, auditing, human resources consulting, and strategy management, it picked holes in the general belief that local refining of crude oil could potentially eliminate the need for petrol subsidies altogether or make the market price affordable.
It argued that unless the international price of crude oil falls below a certain level, while local refining will provide a price cushion, it is not a silver bullet that would magically solve the subsidy problem.
