aNigerians are now paying more money than Americans in real terms for
petrol and diesel, bye-products of the crude oil for which Nigeria is
Africa’s leading producer.
As oil prices tumbled close to $50 after
the New Year, US consumers have reaped the benefit in lower prices for
gasoline and diesel , according to the latest statistics by US Energy
Information Administration.
As at 5 January, pump price for petrol
fell to $1.974 and $1.993 in US Midwest and Gulf Coast states. The
national average was $2.214. In naira terms, petrol is now being sold in
the Midwest at N363 per gallon, compared to N388 in Nigeria. In the US
Gulf Coast areas, petrol is now N366 per gallon, compared to Nigeria’s
N388. The American gallon is an equivalent of Nigeria’s four
litres.(N388 is equal to N97x4litres).
Americans are also paying
between N60 and N50 less than Nigerians for diesel. Pump price for
diesel in the Gulf Coast fell to $3.045 on 5 January. And it was $3.102
in the Midwest. The US average was $3.137. The Naira equivalent for the
Gulf Coast buyer is N560 for four litres as against the N620 that a
Nigerian pays for a similar volume at N155 per litre. In the Midwest of
the USA, the American consumer pays N570 for four litres. In Nigeria,
the consumer pays N620.
The US consumer began enjoying pump price
relief since 29 December, with petrol prices falling to $2.088 in the
Midwest and $2.073 in the Gulf Coast. At the exchange rate of N184,
these figures translate into N384 and N381. All the calculations here
have been based on N184 to a dollar.
By now, Nigerian officials
cannot justifiably claim any kobo of subsidy on petrol, but Nigeria’s
co-ordinating minister of the economy said on television Monday night
that a 90 kobo subsidy remains on the petrol consumed in the country.
Analysts
said Dr. Ngozi Okonjo Iweala was pushing this phantom subsidy to
justify funding for Sure-P, since there is no more subsidy money saved
to be invested in this fund.
Last December, as Nigeria watched with
alarm, the southward move of oil prices, Okonjo-Iweala had said
government will not reduce the pump price of fuel despite the clear
implication the falling oil prices should have on the local pump price.
She said government would not review the price until the revenue crisis occasioned by the dwindling oil rates is over.
As
quoted by news reports, Mrs. Okonjo-Iweala said in Abuja that the
decision to review fuel price either upwards or downwards would only be
taken after the current crisis in global oil prices has been settled.
The
minister, however, said the government would await expert advice from
the Petroleum Products Pricing Regulatory Agency, PPPRA, which is
updating the fuel pricing template, to help proffer the best way to
address the issue.
The PPPRA is the government agency responsible for monitoring and regulating the price of petroleum products in the country.
“With declining crude oil prices by about 49 percent, soon there will no longer be subsidy in petroleum products as usual,” the minister said.
“But, government is not going to take a decision till after the current volatility in crude oil prices has stabilised.”
The minister said the Nigerian government does not want to reduce fuel price today “only for crude oil price to rise tomorrow and we have to adjust the pump price again”. When she spoke, oil prices were around $60. They are now in the $50 region.
When will there be a respite for the long suffering Nigerian people?
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