Nigeria - President Jonathan To Increase Fuel Pump Price In 2013
https://nigeriaafrica1.blogspot.com/2012/11/nigeria-president-jonathan-to-increase.html
There were strong indications yesterday that the Federal Government of Nigeria would increase the fuel pump price in 2013.
Nigerian President Goodluck Jonathan had on Thursday in Abuja said total fuel subsidy removal was a must. He stated that only total removal of subsidy on petroleum products would attract investors to the oil sector and end the importation of fuel.
Local news agency investigations have revealed that the President’s statement was a prelude to another partial deregulation in 2013 because the N971bn fuel subsidy budget for 2013 would not sustain importation of the product throughout the year.
The amount is N83bn or 9.35 per cent higher than the N888bn that is currently being spent in the 2012 fiscal year.
It was reliably gathered that government had opted for a phased deregulation of the downstream sector, which would lead to a price hike.
Top sources, in the oil industry, who spoke with reporters in Abuja, said the hike in fuel prices next year was “inevitable.”
The sources who pleaded on anonimity because they were not authorised to speak on the matter, said Nigerians should prepare for the new price regime.
One of the sources said government was considering two options in 2013.
He said, “It is either the current fuel scarcity continues or the government embarks on another partial deregulation, leading to another price increase.
“But from all indications, the government will go for the second option. Another price increase is inevitable in 2013.”
It would be recalled that the Nigerian government had in January hiked the pump price of petrol from N65 to N141 but was forced to reduce the price to N97, following mass protests organised by civil society groups.
Meanwhile, civil society groups have told the Nigerian Federal Government to expect the mother of all strikes if subsidy is removed.
Local news agency investigations have revealed that the President’s statement was a prelude to another partial deregulation in 2013 because the N971bn fuel subsidy budget for 2013 would not sustain importation of the product throughout the year.
The amount is N83bn or 9.35 per cent higher than the N888bn that is currently being spent in the 2012 fiscal year.
It was reliably gathered that government had opted for a phased deregulation of the downstream sector, which would lead to a price hike.
Top sources, in the oil industry, who spoke with reporters in Abuja, said the hike in fuel prices next year was “inevitable.”
The sources who pleaded on anonimity because they were not authorised to speak on the matter, said Nigerians should prepare for the new price regime.
One of the sources said government was considering two options in 2013.
He said, “It is either the current fuel scarcity continues or the government embarks on another partial deregulation, leading to another price increase.
“But from all indications, the government will go for the second option. Another price increase is inevitable in 2013.”
It would be recalled that the Nigerian government had in January hiked the pump price of petrol from N65 to N141 but was forced to reduce the price to N97, following mass protests organised by civil society groups.
Meanwhile, civil society groups have told the Nigerian Federal Government to expect the mother of all strikes if subsidy is removed.
