Petrol Prices in Nigeria remains the lowest in the west/Central African sub-regions-FG
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NigeriaE28099s Increased Petrol Price Cheapest In West Africa Angry Reactions Unnecessary E28093 Lai Mohammed

By Mordi Chukwunonso Esther

The Federal Government has said that notwithstanding the recent hike in the price of Premium Motor Spirit to N162 per litre, the price of product in Nigeria remains among the lowest/cheapest in the west/Central African sub-regions and Africa at large.

The statement was made by the Minister of Information and Culture, Lai Mohammed at a press conference in Abuja on Monday. Present at the briefing was the Minister of Power, Alhaji Saleh Mamman and the Minister of Petroleum Resources, Timipre Sylva.

The minister said: ‘’in spite of the recent increase in the price of fuel to N162 per litre, petrol prices in Nigeria remain the lowest in the West/Central African sub-regions.

‘’Below is a comparative analysis of petrol prices in the sub-regions (naira equivalent per litre): Nigeria-N162 per litre; Ghana-N332 per litre; Benin-N359 per litre; Togo-N300 per litre; Niger-N346 per litre; Chad-N366 per litre; Cameroon- N449 per litre; Burkina Faso- N443 per litre; Mali- N476 per litre; Liberia-N257 per litre; Sierra Leone-N281 per litre; Guinea-N363 per litre; and Senegal-N549 per litre.

‘’Outside the sub-region, petrol sells for N211 per litre in Egypt and N168 per litre in Saudi Arabia.

‘’You can now see that even with the removal of subsidy, fuel price in Nigeria remains among the cheapest in Africa.’’

According to him, the current price regime of petrol is in line with the deregulation of the downstream sector in March in accordance with prevailing market dynamics. ’With the price of crude oil inching up, the price of petrol locally is also bound to increase, hence the latest price of N162 per litre. If, per chance, the price of crude drops again, the price of petrol will also drop and the benefits will also be passed on to the consumer.

‘’the angry reactions that have greeted the latest prices of premium motor spirit (PMS) are therefore, unnecessary and totally mischievous. Gentlemen, the truth of the matter is that subsidizing fuel is no longer feasible, especially under the prevailing economic conditions in the country,’’ he stated.

Mohammed added that with the 60 per cent reduction in the nation’s revenue, the present regime can no longer afford to subsidise petrol prices. In addition to giving the breakdown of the 14 year subsidy figures, He noted that the fuel subsidy alone swallowed N10.413trn between 2006 and 2019.

‘’Government can no longer afford to subsidise petrol prices because of its many negative consequences. These include a return to the costly subsidy regime.

‘’with 60% less revenues today, we cannot afford the cost. The second danger is the potential return of fuel queues- which has, thankfully, become a thing of the past under this administration.

‘’the days in which Nigerians queue for hours and days just to buy petrol, often at very high prices, are gone for good. Of course, there is also no provision for fuel subsidy in the revised 2020 budget, because we cannot afford it.

‘’the cost of fuel subsidy is too high and unsustainable. From 2006 to 2019, fuel subsidy gulped 10.413trn. That is an average of N743.8bn per annum.

‘’According to figures provided by the NNPC, the breakdown of the 14-year subsidy is as follows: in 2006, subsidy was N257bn; in 2007, it was N272bn; 2008- N631bn; 2009-N469bn; 2010- N667bn; 2011- N2.105trn; 2012- N1.355trn; 2013-N1.316trn; 2014-N1.217trn; 2015-N654bn; 2016-figure not available; 2017-N144.3bn; 2018-N730.86bn; and 2019-N595bn’’.

On electricity tariff adjustment by Discos, Mohammed explained that the government does not have to borrow just to subsidise generation and distribution, which are both privatised. However, he stated that to protect the vulnerable, NERC has approved that tariff adjustments had to be made, but only on the basis of guaranteed improvement in service. He also noted that despite the recent service-based tariff review, the cost of electricity in Nigeria is still cheaper than in many countries in Africa.

The minister of state for petroleum said the huge effects of COVID-19 pushed the federal government to make the difficult decisions, pleading to Nigerians to understand. He noted that the removal of subsidy and deregulation of the oil sector is an economic imperative. ‘’the government is no longer in the business of fixing prices for petroleum products, we have stepped back. our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering.’’

The ministers pleaded with Nigerians to show understanding of the delicate situation that led to the increase in the petrol price and electricity tariffs, saying Buhari is not unmindful of the pains associated with higher prices at this time.

The presidency, with a statement on Sunday, said that the president would not have allowed the rise in the pump price of petrol to protect the vulnerable if not for a myriad of economic challenges caused by the COVID-19 pandemic.

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