Can anyone explain why, with oil below US$50 per barrel and fuel prices dropping accordingly around the world, the price of petrol is not budging in Nigeria? This article goes in one ear and straight out the other.
i was having the very same conversation at work 2day 2...
That is the way the subsidy works.The price of petrol is set at N70 a litre. When the import price is N100 the government pays N30 as a subsidy.Now this subsidy costs a lot of money so when the price of petrol falls below the list price the government gets to keep the difference. Which in this case is about N2 - N3There is a website that tells you what the actual price per litre is, but I don't know it off the top of my head.I think it is fair because the government ate the cost when oil flew up to $150 so it should recoup some benefit when oil is now at $50.
not shockin...I wish I can post the pic of a cartoon I took of the Tribune (i think) that reflects this issue perfectly...One of the character response to your question was "Don't you know in Nigeria, whatever goes up doesn't come down." I can imagine a lot of Nigerians saying that with indifference. it's a fate they have accepted!Snazzy's comment is quite enlightening though...cheers snazzy
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