Atiku on deregulation: Why is fuel price falling in US, Europe but rising in Nigeria?
Former Vice-President Atiku Abubakar says the price of premium motor spirit (PMS), also known as petrol, should fall with deregulation.
The Petroleum Products Pricing Regulatory Agency (PPPRA) in June, removed the price cap on the retail cost of petrol, subjecting it to the market realities.
Atiku, who had campaigned for the removal of fuel subsidy in the 2019 presidential election, said he was demonised for suggesting it.
He had claimed that the price-fixing system was laced with corruption, and stalling investments.
On September 3, the Petroleum Products Marketing Company (PPMC) announced an increase in the ex-depot price of petrol from N138.62 to N151.56 per litre.
Checks by TheCable showed that petrol price now ranges from N159 per litre to N162 per litre.
But in a tweet on Tuesday, Atiku said crude oil prices have reduced compared to what was obtainable in 2019.
He said fuel prices are lower in the US and Europe, asking why it is higher in Nigeria.
Describing himself as a business man, Atiku said there are questions that need to be answered regarding the increase in fuel price.
According to him, “if we truly deregulated, shouldn’t fuel price have dropped?”
“I am a businessman. I look at things from an economic perspective. Questions beg answers,” Atiku said.
“The price of crude is down from where it was in 2019. In the US and Europe, fuel prices are far lower than they were in 2019.
“If we truly deregulated, shouldn’t fuel price have dropped?”
I am a businessman. I look at things from an economic perspective. Questions beg answers. The price of crude is down from where it was in 2019. In the US and Europe, fuel prices are far lower than they were in 2019. If we truly deregulated, shouldn’t fuel price have dropped?
— Atiku Abubakar (@atiku) September 8, 2020
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Atiku’s question generated a trail of reactions, with some disagreeing with his stance.
Some of those who commented said given the devaluation of the naira and the scarcity of forex, an increase in fuel price is expected.
Below are some of the reactions:
If foreign exchange are hard to get and we export the crude to be refined for our consumption and then import it back. The prices should be more than we buy, as a Buisness mogul, Sir I'm sure this skipped your mind.
Even though I'm not happy abt the situation, but it's a fact.
Advertisement— Ibrahim Ahmed Tijjani (@ibrahimhi5) September 8, 2020
He didn't consider the fact that Naira has been devalued. It makes import more expensive. Not just petroleum products. Question he and others should ask is why refineries can't work since 1999
— Code_1 (@kinmoju) September 8, 2020
Sir, deregulation DOES NOT mean a reduction in the price of fuel, rather it means unstable daily price regime based on different factors. The screenshots below show the price of fuel across different stations this morning in Brampton, Ontario. You need more education on this sir. pic.twitter.com/Zd8Qj0tLuZ
— Tenderbiggie (Eru O B'odo) (@BayoAdedosu) September 8, 2020
His excellency! You have friends and family in Europe. Would you like to double check with a few of them if prices have dropped in Europe? To the best of my knowledge this is not the case sir. It would be nice if you cross check and tweet with your findings sir. Respect always
— Gbó̩láhàn Gbàdàmó̩sí (@GbolaGbadamosi) September 8, 2020
Erronomist Atiku, with logical reasoning, you would have realised that the PMS you bought in 🇳🇬 in 2019 was subsidised PMS. What you are having now is unsubsidized PMS; reason for the increase in price. So, you are expecting unsubsidized PMS to be cheaper than subsidised PMS?
— Adetola A. Kehinde (IGBOMINA) (@Optimistic_Ade) September 8, 2020
in 2019, it was subsidized, in 2020, it is not. A thorough business analysis will reveal this sir.
Therefore, even a fall in oil prices will not mean a cheaper price in 2020 for Nigerians. Hopefully, as we approach home refining, we pray to have home control of price.
— OmeifeJideofor Ujah (@ujahmycine) September 8, 2020
I'm sure you know we just deregulated this year.
There is not fuel subsidy in the 2020 budget but was in 2019.
I understand your followers don't know much so they will think this is a revelation.
— Alabi I. Ayodeji (@damola_ade77) September 8, 2020
Coming from an acclaimed businessman,does deregulation lead to an immediate fall in price & who even said that it must lead to a fall in price? we were all around when the GSM came on board, what happened?
DISCOS have gone private for years now, has the cost of Power reduced yet?— Lampardinho (@ihyosuji) September 8, 2020
His excellency is right in what he said. Nigeria is exporting crude oil not PMS. So we work with the price of crude oil. let us not be political on this issue because everybody will suffer for this.