File Photo: Why the fuel price went up
Here are some of the questions Nigerians are asking on the new petrol price. And here are the answers
1. What is the benefit of the new price regime to
.a End fuel scarcity by ensuring availability of products at all
locations of the country
b. Reduce hoarding, smuggling and diversion substantially and stabilise price at the actual product price
c. Ensures market stability and improves fuel supply situation through private sector participation
d. Creates Labour market stability (will potentially create additional 200,000 jobs through new investments in refineries and retails and prevent potential loss of nearly 400,000 jobs in existing investments).
2. Why the new price regime?
The rise in crude oil price and high cost of importation has brought back subsidy regime (at the price of N86.50). Due to decline in government income related to crude oil and output caused by vandalism in the Niger Delta, there is neither funding nor appropriation to cover this in the 2016 Budget.
3. What is the difference between this new price regime and previous price reviews?
All stakeholders including marketing companies and independent experts were consulted in arriving at the appropriate cost reflective regime. This is in furtherance of the Price modulation on framework rolled out in January 2016
which entails modulating prices down or up on a periodic basis
to reflect actual prevailing costs.
4. Is this new price regime a deregulation?
While the Federal Government is not deregulating, this new
price regime will ensure that the price of products are
monitored to ensure that citizen get a fair value for products
5. What is the real cost of PMS to the Nigerian consumer?
The estimated “true” cost of PMS was valued to be 243.05NGN per litre. This is factoring the estimated average me spent to obtain PMS at the official price (86.50NGN), the estimated hourly wage of the average …Read More
Source:: PM Newspaper