Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1. PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

State actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent. The federal government while responding to the development in the international crude oil market has cut 2015 subsidy budget to about N 458.68 billion, down from N 971.14 billion in the current Fiscal Year. It has also reviewed downwards it oil price benchmark twice to avoid being caught napping in the crashing oil prices scenario.

It originally proposed $78 per barrel of oil for the 2015 budget, but later revised to $73 per barrel and lately $65 per barrel. Agitation for the a cut in prices of petroleum products have been mounting with Governor Babatunde Fashola of Lagos State, last week, criticizing the federal government over its reluctance towards reducing the pump price of oil from the current N97 per litre, after a significant decline in crude prices.

The Governor spoke while addressing hundreds of youths at the Lagos State After School Graduation Development Centre, AGDC, IGNITE Employability Project 5, Ikeja. His words, “Now, we should be enjoying cheap fuel if the price of oil has dropped globally. And even as we import the product, a major component has reduced in price. While this has reduced, the pump price of fuel in the country still remains the same. Something is wrong. “If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of crude oil drops. “I am not an economist but I have some logic and common sense to ask critical questions. For instance, if one buys flour at N10 per kilogram, and the bread is sold at N1 per loaf, if the price of flour drops, the price of the bread should also change”.

The Nigeria Labour Congress, NLC, has also joined the agitation by calling on the federal government to reduce pump prices of petroleum products in line with falling crude prices in the international market as has been done by other countries. General Secretary of NLC, Dr Peter Oso-Eson, told journalists midweek that NLC was worried prices of products have remained static. According to him, ”The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit.

What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation. “What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase. ”We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price/#sthash.W3BOrn8n.dpuf

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Is that so? I will look into the matter as soon as I wake up

in Nigeria, 'anything goes' and one is left wondering if if we have a government at all.
countries that don't have crude oil will be enjoying low oil prices at this time while it is the elite that enjoy the benefits here.
meanwhile the oil prices will still fall further.
Like many other citizens, I used to be enthusiastic about Jonathan but as it is now, he seems incapable of bringing about the desired change, its still business as usual.
Change seems more imminent with every passing day.

Agitators who expect the administration of
President Goodluck Ebele Jonathan to reduce the
prices of petroleum products may be
disappointed

Moderator,why are u favoring some people to others?This same topic was first posted by me on December 13 at 10:52am while the op posted the same thing at 7:53pm.Pls correct this anomality.https://www.nairaland.com/2042476/why-fg-reluctant-reduce-petrol

ok..betti why

price no dey fall for naija na.

GOD HELP US

siraj1402:
OK o

oya modify am o.

bad news

story for the dogs

The price will still come down. I would like to tenk seun for making frontpage easier to reach, there is now little or no competition for spacebooking

same old gist

siraj1402:
OK o

do you have to quote that long epistle to type that s.hit?

GEJ Ain't loyal

PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

I don't believe the subsidy eish

Because right from the beginning..... This has being a way the Government tries to makes its cronies rich and exploiting the innocent citizens


Look at the N3.1bn Subsidy Scam that the EFCC just uncover of recent
https://www.nairaland.com/2039821/n3.1bn-subsidy-scam-efcc-re-arraigns

This show that the subsidy scam is just a plot to enrich some people and defraud the nation

So I don't believe in subsidy talkless of increase in fuel pump price

Gej

I have to agree with Fashola that the price of petroleum products should be reduced. This clueless GEJ federal government have been fleecing Nigerian citizens since 2010.
#GEJ till feb 2015.

I step

Ayam coming

Jonathan clueless

Okay,
They need to do smth,

am so glad at the rate that peeps are ready to vote out our drunk president
GEJ till eternity

GEJ has refused to do any good to the masses, not even one!
Make Feb 2015 come, he'll return to Otuoke in Jesus name, Amen!

PDP achievement since Abdulsalam abubakar hand over

let me mention 19


1. Electricity : in 1999 = 32%..in 2014 = 5% ❌

2. Petroleum price : in 1999 = #18..in 2014 = #95 ❌

3. Naira to dollar : in 1999 = #85..2014 = #181 ❌

4. water : 1999 = 39%..2014 = 1% ❌

5. security : 1999 = 45%..2014 = 14% ❌

6. employment : 1999 = 57%..2014 = 9% ❌

7. government property maintenance such as stadium,national theatre,refineries,schools,Roads etc : 1999 = 24%..2014 = 2% ❌

8. Education : 1999 = 57%..2014 = 88% ✔

9. corruption : 1999 = 47%..2014 = 85% ❌

10. Foreign investors : 1999 = 15%..2014 = 36% ❓

11. Telecommunication system : 1999 = 9%..2014 = 79% ✔

12. crime : 1999 = 13%..2014 = 65% ❌

13. Medical care : 1999 = 27%..2014 = 38% ❓

14. Insurgency : 1999 = 1%..2014 = 71% ❌

15. Embezzlement : 1999 = 32%..2014 =86% ❌

16. Creativity : 1999 = 41%..2014 = 81% ✔

17. Poverty : 1999 = 68%..2014 = 42% ✔

18. New Roads : 1999 = 21%..2014 = 40% ❓

19. Kidnapping : 1999 = 3%..2014 = 91% ❌

If only we were refining our own crude here,all these arguements and counter accusations,would have been avoided. Unfortunately,the corrupt system would never allow refineries work. From 1999 to now,billions have been spent on reviving the refineries but the same cabal who want to keep making billions from fuel imports,have always found a way of making our refineries not work.

Who is the government sef ? Come 2015 Buhari will fix NIGERIA i.e Corruption, Petroleum, Electricity, Roads, Unemployment and Education Sector.

God Bless Buhari
God Bless Nigeria

i expect oil to be sold below $50 /barrel next year.What will they do? increase price of petrol to make up for the devaluation? gej is just dumb.

GEJ till... APC turns to an Orpanage

Am yet to understand why we can not have a refinary that can refine fuel to our total population.anyways God is watching oga jona in 5D.pls I need to knw what is holding ouer refinary(ies).

jaybiz007:
price no dey fall for naija na.

Please tell dem cos e b like say dem be JJC for Naija.

Not up to 3 month again....otuoke will welcome their badluck son they gave Nigeria.