Nigeria, Africa’s largest economy and largest crude producer, on Sunday, announced a reduction in the pump price of premium motor spirit (petrol) from N97 to N87 ($0.5) per litre. The reduction came as a result of the continued slump in global oil prices.
The Minister of Petroleum, Diezani Allison-Madueke, who is also the the chairperson of OPEC, made the announcement on the country’s network station, the Nigerian Television Authority (NTA). “I will like to announce the reduction in the price of Premium Motor Spirit by N10. Therefore, the reduction would be from N97 per litre to N87 per litre and this would be effective from midnight Sunday, January 18, 2015. In line with this I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Directorate of Petroleum Resources to ensure that there is strict adherence of this regime as it takes effect from midnight Sunday, January 18. I do hope that the entire country will benefit immensely from this reduction of the pump price,” Allison-Madueke said.
Nigerians have called for a price reduction in recent weeks as global oil prices continue to fall. The price of OPEC basket of twelve crudes, which includes Nigeria’s Bonny Light, stood at $43.14 a barrel on Thursday. The continued slump in prices have made several countries in Africa and beyond slash retail price of fuel, but prices have remained the same in Nigeria until midnight on Sunday.
The reduction has elicited mixed reaction from Nigerians, as some sees it as a political move to boost the President’s re-election campaign since the reduction is not commensurate with the global reduction in the crude oil price. They solicited for outright deregulation of the oil sector, prosecution of those found guilty of culpability in the subsidy payment and put an end to oil theft. Some hail the reduction, saying that it shows the government is sensitive to the suffering of Nigerians.
Nigeria will now join Tanzania and South Africa, two of the African nations to have cut prices. Other countries that have reduced retail prices of fuel globally include China, Vietnam, Pakistan, India, United Kingdom, among others.
