How soon will Nigeria Reduces fuel pump Price Now Crude Oil Price Has decline? The lull at the international crude market is no longer news, but the effects of the decline on various economies across the globe vary from one country to the other. However, while some countries have reduced the pump price of refined petroleum products in their countries, Nigeria seems not to be looking at that direction. In this report, TUNDE DODONDAWA examines the possibility of reducing pump price of refined products and other possible effects on the economy. Excerpts:
The fall of global oil prices below Nigeria’s 2014 budget benchmark has sent the country into an economic crisis mode. However, in a bid to insulate the economy from falling crude oil prices, the Federal Government announced far-reaching policy measures to deal with the crashing crude oil prices, slashing 2015 oil benchmark from $78 to $73 per barrel. Crude oil prices dropped to $73.74 per barrel, some cents below the $78 earlier proposed to the National Assembly as bench mark for the 2015 budget.
The Coordinating Minister for the Economy and Minister of Finance, Dr NgoziOkonjo-Iweala, said: “As part of the response to falling oil prices, the Medium Term Expenditure Framework (MTEF) and the Budget 2015 proposal to the National Assembly have been revised. Government is now proposing a benchmark of $73 per barrel to the National Assembly compared to the earlier proposed benchmark of $78.
“Given the nature of the oil market, we needed to see the extent and trend of the oil price in order to take the right measures. Panic is not a strategy. It’s important that our strategies are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 for our premium Bonny Light Crude.
“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary. But we should also not forget that we retain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies,” she said. SEE MORE ON PAGE 2