‘Why govt cut petrol price to N87 per litre’

• Denies political consideration 

WITH effect from last midnight, the Federal Government has reduced the price of petrol from N97 to N87 per litre.

  The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who announced this in Abuja last night said the decision was informed by the falling oil prices in the international market. 

   The Petroleum Products Pricing Regulatory Agency (PPPRA) and Petroleum Products Marketing Company (PPMC) have been directed to effect the change immediately. 

  The Minister said: “As you may be aware, there has been a lot of volatility in the oil market in the past few months and due to this the importation prices of our petroleum products have been impacted. Therefore, with the approval and directive of Mr. President and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit (Petrol) from the current Ninety Seven Naira (N97) per litre pump price down to Eighty Seven Naira (N87) per litre pump price, effective from twelve (12) midnight Sunday, 18th of January 2015.

   “Accordingly, I have directed the PPPRA and the Department of Petroleum Resources (DPR) to ensure strict compliance with this price adjustment by all marketing companies. It is my hope that all Nigerians will benefit from this adjustment.”

  This is the second time in the history of Nigeria that a government is reducing the pump price of petroleum. The first was the administration of the late Umaru Musa Yar’ Adua, who reduced it from N75 to N65 per litre in June 2007. 

   Meanwhile, the Senior Special Adviser to the President on Media and Publicity, Dr. Reuben Abati told The Guardian in an interview last night that to insinuate that the pump price was reduced on altar of politics smacks of insensitivity. 

  He contended that there was a government in place that was elected to protect the Nigerian populace and ensure their welfare at all times. 

   According to him, the reduction is an economic reality that is playing out in the global arena that has nothing to do with political developments in Nigeria.

   There are no indications that the price of oil will rebound in the international market just yet. This is because, for example, Saudi Arabia, the world’s biggest exporter, has said it will not support prices by cutting production even if it falls as low as $20 a barrel. Riyadh has ignored calls from smaller OPEC members, including Venezuela, to react to falling oil prices at the cartel’s November meeting.

HISTORY OF FUEL PRICE INCREASES IN NIGERIA

General Yakubu Gowon – 6k to 8.45k (1973).

General Murtala Mohammed – 8.45k to 9k (1976).

General Olusegun Obasanjo – Oct 1,1978: 9k to 15.3k.

Alhaji Shehu Shagari-Apr. 20,1982: 15.3k to 20k.

Ibrahim Babangida-Mar 31, 86: 20k to 39.5k.

Ibrahim Babangida-Apr 10, 1988: 39.5k to 42k.

Babangida-Jan 1, 1989: 42k to 60k (private vehicles).

Ibrahim Babangida- Mar 6, 1991: 60k to 70k.

Ernest Shonekan (82 days in power)-Nov 8, 1993: 70k to N5

General Sani Abacha-Nov 22, 1993: N5 to N3.25k (price dropped).

General Sani Abacha-Oct 2, 1994: N3.25k to N15.

Abacha-Oct 4, 1994: N15 to N11(price dropped).

General Abdulsalami Abubakar-Dec 20, 1998: N11 to N25.

Abubakar-Jan 6,1999: N25 to 20 (price dropped).

Olusegun Obasanjo – June 1, 2000: N20 to N30.

Olusegun Obasanjo  -June 8, 2000: 30 to N22 (price drops)

Olusegun Obasanjo-Jan 1, 2002: N22 to N26.

Olusegun Obasanjo -June, 2003: N26 to N42.

Olusegun Obasanjo  -May 29, 2004: N42 to 50.

Olusegun Obasanjo -Aug 25, 2004: N50 to N65.

Olusegun Obasanjo -May 27, 2007: N65 to N75.

Alhaji Umaru Yar’ Adua-June, 2007: back to N65 (price drops).

Dr. Goodluck Jonathan – Jan 1, 2012: N141 (later reduced to N97 on Jan 17, 2012).