Buhari Justifies Increase in Petrol Price, Says It Makes No Sense for Oil to be Cheaper in Nigeria than Saudi Arabia

Obiajulu Joel Nwolu

President Muhammadu Buhari has said it makes no sense for Nigeria to sell petroleum products at cheaper prices than its neighbouring countries.

He disclosed this on Thursday while presenting a speech to mark the occasion of Nigeria’s 60th Independence Anniversary at the Presidential Villa, Abuja.

He said, “We have suffered a significant drop in our foreign exchange earnings and internal revenues due to 40 per cent drop in oil prices and steep drop in economic activities, leading to a 60 per cent drop in government revenue.

“Our government is grappling with the dual challenge of saving lives and livelihoods in face of drastically reduced resources.

“In this regard, sustaining the level of petroleum prices is no longer possible. The government, since coming into office has recognized the economic argument for adjusting the price of petroleum. But the social argument about the knock-on effect of any adjustment weighed heavily with the government.”

“No government in the past did what we are doing with such scarce resources. We have managed to keep things going in spite of the disproportionate spending on security. In the circumstances, a responsible government must face realities and take tough decisions.”

He went ahead to add, “Petroleum prices in Nigeria are to be adjusted. We sell now at N161 per litre. A comparison with our neighbours will illustrate the point.

“Chad, which is an oil-producing country, charges N362 per litre. Niger, also an oil-producing country, sells oil at N346 per litre. Ghana, another oil-producing country, petroleum pump price is N326 per litre. Further afield, Egypt charges N211 per litre. Saudi Arabia charges N168 per litre.

“It makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia.”

He added, “To achieve the great country we desire, we need to solidify our strength, increase our commitment and encourage ourselves to do that which is right and proper even when no one is watching.”

This post was written by Obiajulu Joel Nwolu.

The views expressed here belong to the author and do not necessarily reflect our views and opinions.

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