Nigerians Now Pay More For Petrol And Diesel Than Americans

Nigerians are now paying more money than Americans in real terms for petrol and diesel, bye-products of the crude oil for which Nigeria is Africa’s leading producer.

As oil prices tumbled close to $50 after the New Year, US consumers have reaped the benefit in lower prices for gasoline and diesel , according to the latest statistics by US Energy Information Administration.
As at 5 January, pump price for petrol fell to $1.974 and $1.993 in US Midwest and Gulf Coast states. The national average was $2.214. In naira terms, petrol is now being sold in the Midwest at N363 per gallon, compared to N388 in Nigeria. In the US Gulf Coast areas, petrol is now N366 per gallon, compared to Nigeria’s N388. The American gallon is an equivalent of Nigeria’s four litres.(N388 is equal to N97x4litres).
Americans are also paying between N60 and N50 less than Nigerians for diesel. Pump price for diesel in the Gulf Coast fell to $3.045 on 5 January. And it was $3.102 in the Midwest. The US average was $3.137. The Naira equivalent for the Gulf Coast buyer is N560 for four litres as against the N620 that a Nigerian pays for a similar volume at N155 per litre. In the Midwest of the USA, the American consumer pays N570 for four litres. In Nigeria, the consumer pays N620.
The US consumer began enjoying pump price relief since 29 December, with petrol prices falling to $2.088 in the Midwest and $2.073 in the Gulf Coast. At the exchange rate of N184, these figures translate into N384 and N381. All the calculations here have been based on N184 to a dollar.
By now, Nigerian officials cannot justifiably claim any kobo of subsidy on petrol, but Nigeria’s co-ordinating minister of the economy said on television Monday night that a 90 kobo subsidy remains on the petrol consumed in the country.
Analysts said Dr. Ngozi Okonjo Iweala was pushing this phantom subsidy to justify funding for Sure-P, since there is no more subsidy money saved to be invested in this fund.
Last December, as Nigeria watched with alarm, the southward move of oil prices, Okonjo-Iweala had said government will not reduce the pump price of fuel despite the clear implication the falling oil prices should have on the local pump price.
She said government would not review the price until the revenue crisis occasioned by the dwindling oil rates is over.
As quoted by news reports, Mrs. Okonjo-Iweala said in Abuja that the decision to review fuel price either upwards or downwards would only be taken after the current crisis in global oil prices has been settled.
The minister, however, said the government would await expert advice from the Petroleum Products Pricing Regulatory Agency, PPPRA, which is updating the fuel pricing template, to help proffer the best way to address the issue.
The PPPRA is the government agency responsible for monitoring and regulating the price of petroleum products in the country.
“With declining crude oil prices by about 49 percent, soon there will no longer be subsidy in petroleum products as usual,” the minister said.
“But, government is not going to take a decision till after the current volatility in crude oil prices has stabilised.”
The minister said the Nigerian government does not want to reduce fuel price today “only for crude oil price to rise tomorrow and we have to adjust the pump price again”. When she spoke, oil prices were around $60. They are now in the $50 region.
When will there be a respite for the long suffering Nigerian people?

---

Posted: at 6-01-2015 09:54 AM (9 years ago) | Hero

Hmmmm, I should remind us here that the US do not produce oil in whichever way.

Posted: at 6-01-2015 10:11 AM (9 years ago) | Gistmaniac

one day one day change will exist in dis Nation

Posted: at 6-01-2015 10:21 AM (9 years ago) | Gistmaniac

A̶̲̥̅♏ nt surprised. When we have cabals and thieves as Leaders .........  wot do U̶̲̥̅̊ expecT ...........  The change is near ....... GMB is the solution ...........

Posted: at 6-01-2015 10:28 AM (9 years ago) | Gistmaniac

changes must come for 2015 by gmb

Posted: at 6-01-2015 11:28 AM (9 years ago) | Upcoming

Where did you get your information from. For almost a year now US has overtaken Saudi Arabia in oil production. Bros, you need to do your research again. US has been producing some oil for ages but could not drill some shale oil in Texas and North Dakota because it is not economically viable measure as those oils are below rock formation. This is currently a thing of the past as US is currently using more economically measure of hydraulic fracking and horizontal drilling to drill oil from these two states. US increased in oil production with Saudi Arabia not ready to cut back on their production of oil as per OPEC recommendation to stabilize world oil market is actually what created the present situation in which supply of oil has exceeded demand in world oil market in which price of crude oil which was around $120 per barrel is currently forced to stay at $57 per barrel. This move by the US is currently making oil producing countries to feel the pain especially Russia feeling the greatest heat (40% of Russia GDP is based on oil). Nigeria as well is having her own share as some of Nigeria oil is currently on the high sea since middle of last year with no buyer. At present, I as one of the US residents enjoy this oil boom in the US as the price of gas that used to fill my car has significantly reduced from around $50 to around $28.                           Dr Soba, my brother, your information is wrong because at present and i repeat at present, United States of America has overtaken Saudi Arabia as the largest producer of crude oil in the world and prediction of the economists is that this will remain until God knows when because US has abundance of oil in various states (Texas, California Alaska, North Dakota, etc.) which they have not been drilling much from and which they have just started and this is just the beginning.

Posted: at 6-01-2015 12:05 PM (9 years ago) | Upcoming

God bless you, somebody like Dr Soba who keeps feeding us with wrong information on Naijapals will make people like Dareper fail exams in economics and Geography. Lol..... US after having overtaken Saudi Arabia as the largest producer in the world has experienced great economic recovery and this has increased the rating of Obama administration. As we can see, dollar conversion to Naira  has increased from around N160 to mid N180 since third quarter of last year. World economy is in turmoil now due to this as countries like Russia, Venezuela and Nigeria taking the heat and US enjoying it

Posted: at 6-01-2015 12:31 PM (9 years ago) | Upcoming

Good 4 notting  president

Posted: at 6-01-2015 02:24 PM (9 years ago) | Hero

the united states no longer buys oil from Nigeria....wahala dey o...imagine more than 50 years of oil production ,what have  we done with it ..compares to what other oil producing countries have done with their revenue in 50yrs....Saudi Arabia and kuwait

Posted: at 6-01-2015 04:11 PM (9 years ago) | Gistmaniac

   Many analysts have told Nigeria to make the best use of oil market when our oil is really selling and in full demand but our politicians failed to listen but instead they keep on squandering the resource. A time is coming when crude oil will be useless to any economy. For example, with increase in petroleum production by countries like US, US have been able to get the light sweet crude oil within their own shore and therefore Nigeria Bonny Light is rendered useless and had since stopped selling.                                                                                                                        Analysts said that fallen price of oil has just started and many economies that depend on oil should better find alternatives. Many factors that will render oil economy useless include the following
 1. Increase in the development of energy efficiency technologies
2. Increase in development of clean energy alternatives such as Bio-fuels and Bio- fossils that can replace crude oil. Exploits in research and development such as in the area of Synthetic Biology has proven useful in the venture in which organic materials such as sugar cane can be used to synthesize clean bio-fuel in the laboratory. The amazing thing is that these Bio-fuels are more clean alternatives and will reduce global warming and pollution.
3. Discovery of oil in more countries and peace in formerly war-torn countries like Libya, Iraq causing these countries to resume production of oil. Also the removal of Sanction on Iranian oil

   Countries like Dubai had seen the handwriting on the wall haven realized that their oil will be fully consumed by the year 2025 or so, they quickly developed their country so that they can make money through tourism and business investment and as we can see, Dubai has turned to a sort of Mecca for global tourists and the country is making more than they are making from crude oil.

Nigeria is heading for trouble now and personally I think I like it as there will be no money for our politicians to steal by the time the country become useless. Also, the threat of secession by some part of the country will reduce because of oil
 It is high time we focused on alternatives such as farming and tourism because we have the land and natural features that can attract global tourists. Russia in particular has started to roll out more Vodka (alcohol) because they are the largest consumer of alcohol to make up for loss in oil revenue. In general Nigeria oil has been more of a curse than blessing to our economy

Posted: at 6-01-2015 05:15 PM (9 years ago) | Upcoming