FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

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FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP
FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

-FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

-Ceiling price of petrol set at #145 from #87 by government

-PMS is currently sold at #160 and above following the announcement

 

FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP

Nigerian Government yesterday officially announced the removal of petrol subsidy, ending the process of deregulation of the petrol industry which started in the final months of the immediate past administration of Mr Jonathan .

The government of Nigeria headed by Goodluck Ebele Jonathan had on January 1st 2013 announced a removal of subsidy on petroleum products.

The removal then led to a nationwide protest which lasted days. The government was made to bring down pump price of petrol from about 120 Naira to 97 Naira. Mr Jonathan’s government then announced that the removal was only partial.
In what is to be taken as total, the Nigerian government announced on Wednesday the total removal of subsidy on imported petroleum products. the announcement was followed by an almost increment by two-thirds in the pump price of petrol across the country.
According to Nigeria’s Minister of state for petroleum, Ibe Kachikwu, the government has decided to allow petrol prices to rise by two thirds, in a bid to ease crippling fuel shortages.The increase in pump price thus imply availability for the citizens. Ibe Kachikwu said a litre of petrol would now cost a maximum of 145 Naira (£0.50), up from about 86.5 Naira.

FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP
“The main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government,”

Mr Kachikwu explained
“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices,” he added.

As retailers get more money, the government aims to further cut back on costly subsidies. Fuel shortages have seen Nigerians paying up to 250 Naira per litre on the black market, BBC reported.

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Despite being one of Africa’s largest oil producers, Nigeria has to import fuel to meet demand. Nigerian refineries are dilapidated and work at a fraction of their capacity.

FUEL SUBSIDY REMOVAL: PETROL PRICE IN NIGERIA SHOOTS UP
Despite 145naira only being the ceiling price, one of our correspondents who visited local filling station across a southwestern state reported that some station were seen selling PMS at 160naira. It was further rumoured that the price is bound to rice by dawn.