On Thursday January 22, 2009, history was made in the annals of Nigeria’s downstream sector when government capitulated to the yearnings of majority of Nigerians by announcing a downward review of the pump price of petrol. This move could be termed historical because this seems the first time a major downward review of petrol prices would be announced. It all looked like a case of the impossible becoming possible because petroleum products prices had maintained an upward swing for the past 7 years.
From N20 per litre in 2002 to N75/ N70 per litre in 2007, in a jiffy and without due consultations, the Obasanjo government had increased the prices of petroleum products. But when the present administration came on board, it announced that there will be no fuel hike for the whole of 2008. At the expiration of the moratorium and contrary to Nigerians expectation, the pump price was reviewed downward. This move came with mixed feelings. While some commended the Federal Government for a job well done, others were skeptical towards it as to the rationale for the sudden downward review. As a matter of fact, experience had taught Nigerians to misconstrue every motive of government. They saw the reduction of N5 as another Greek gift from government and a ploy to indirectly flag off full deregulation of PMS. The accusation, government speedily refuted to be an act of benevolence.
Typical of Nigerian Labour Congress (NLC) and the elite groups, the announcement elicited some elements of animosity as these groups viewed government’s action as a way of trying to introduce full deregulation through the back door. Their grouse was that deregulation would further impoverish the poor, while the rich gets richer. They further hinged their argument on the premise that government was likely going to jerk up the price in the future when there is an increase in the international oil market, which will make Nigerians unable to oppose any such move.
However, the issue of inadequate information should be blamed not only on the government who failed to put adequate facilities on ground before embracing deregulation, but also on NLC for failing to grasp the reality on ground to see deregulation as an inevitability. It is quite clear that NLC does not want to be seen as anti-masses hence chose to play to the gallery. Labour Union in Nigeria are not ignorant about deregulation, at least what obtains at the telecommunication industry is one life example, and consumers are at liberty to choose whatever network that appeals to them. They are no more under any compulsion about which service provider to patronize. This has ushered in the era of stiff competition among the network providers, with one provider trying to outwit the other in a highly competitive market. Sim cards are now free unlike what was obtainable initially. The NLC knows the fact but failed to enjoin the government to educate the masses on the need to embrace deregulation.
It is a right and not a privilege for Nigerians to be dully informed of what deregulation really is and their benefits. This inadequate publicity during the initial implementation stage of deregulation was the reason for the antagonistic attitude towards every government policies by Nigerians. But should we allow this to continue? The answer is no! Whether Nigerians like it or not, deregulation will surely come, albeit, like a thief in the night. Deregulation of the downstream petroleum sector is the only remedy to the abnormalities inherent in the industry.
The global economic recess, the spikes in the Middle East and natural disasters that took place in some countries have surely affected crude prices adversely, forcing countries to review their domestic petroleum products to reflect global trends. A cursory look at some of these countries revealed that South Africa, Guinea, Kenya, Burundi, Rwanda, Zambia, and Tanzania have all slashed their domestic petroleum products to lessen its effect on their citizens. Of course, this downward review of domestic prices had been recurring trends in most of these countries that their citizens always and easily adjust to either an upward or downward movement in the prices of crude oil at the international market. For instance, in July 2008, crude oil prices reached its record high of $147 per barrel before it plummeted to $40 and $37 per barrel this year (2009), it automatically reflected as usual on these other countries.
Nigeria being what it is, toed the way of these countries, a move misconstrued to have had political undertone by the elites. The reduction as far as most Nigerians are concerned, was belated. In spite of the litany of governments we have had previously, none made an effort to allow the trends in the international oil market to reflect locally, rather there had been upward review all the way. I think it is proper to give this administration a chance to work for us, we should be supportive. We should not be citing countries earlier mentioned as constantly reviewing their prices as situation demanded since they have been fully deregulated and now reaping the benefits. Nigerians can also join the movement if she should embrace full deregulation of the petroleum sector. But then, will the market indices determine the prices of fuel locally as it reflects the global economics? Although, easy, it will not be, but we should tackle the bull by the horn.
For Nigerians to cry wolf over deregulation is not out of place. Nobody is having it rosy, since even the rich also cry, while the poor yells. Time will tell whether government goofed or not. But for now, lets give kudos for breaking the jinx of perpetual upward review of pump prices.
On Thursday January 22, 2009, history was made in the annals of Nigeria’s downstream sector when government capitulated to the yearnings of majority of Nigerians by announcing a downward review of the pump price of petrol. This move could be termed historical because this seems the first time a major downward review of petrol prices would be announced. It all looked like a case of the impossible becoming possible because petroleum products prices had maintained an upward swing for the past 7 years.
From N20 per litre in 2002 to N75/ N70 per litre in 2007, in a jiffy and without due consultations, the Obasanjo government had increased the prices of petroleum products. But when the present administration came on board, it announced that there will be no fuel hike for the whole of 2008. At the expiration of the moratorium and contrary to Nigerians expectation, the pump price was reviewed downward. This move came with mixed feelings. While some commended the Federal Government for a job well done, others were skeptical towards it as to the rationale for the sudden downward review. As a matter of fact, experience had taught Nigerians to misconstrue every motive of government. They saw the reduction of N5 as another Greek gift from government and a ploy to indirectly flag off full deregulation of PMS. The accusation, government speedily refuted to be an act of benevolence.
Typical of Nigerian Labour Congress (NLC) and the elite groups, the announcement elicited some elements of animosity as these groups viewed government’s action as a way of trying to introduce full deregulation through the back door. Their grouse was that deregulation would further impoverish the poor, while the rich gets richer. They further hinged their argument on the premise that government was likely going to jerk up the price in the future when there is an increase in the international oil market, which will make Nigerians unable to oppose any such move.
However, the issue of inadequate information should be blamed not only on the government who failed to put adequate facilities on ground before embracing deregulation, but also on NLC for failing to grasp the reality on ground to see deregulation as an inevitability. It is quite clear that NLC does not want to be seen as anti-masses hence chose to play to the gallery. Labour Union in Nigeria are not ignorant about deregulation, at least what obtains at the telecommunication industry is one life example, and consumers are at liberty to choose whatever network that appeals to them. They are no more under any compulsion about which service provider to patronize. This has ushered in the era of stiff competition among the network providers, with one provider trying to outwit the other in a highly competitive market. Sim cards are now free unlike what was obtainable initially. The NLC knows the fact but failed to enjoin the government to educate the masses on the need to embrace deregulation.
It is a right and not a privilege for Nigerians to be dully informed of what deregulation really is and their benefits. This inadequate publicity during the initial implementation stage of deregulation was the reason for the antagonistic attitude towards every government policies by Nigerians. But should we allow this to continue? The answer is no! Whether Nigerians like it or not, deregulation will surely come, albeit, like a thief in the night. Deregulation of the downstream petroleum sector is the only remedy to the abnormalities inherent in the industry.
The global economic recess, the spikes in the Middle East and natural disasters that took place in some countries have surely affected crude prices adversely, forcing countries to review their domestic petroleum products to reflect global trends. A cursory look at some of these countries revealed that South Africa, Guinea, Kenya, Burundi, Rwanda, Zambia, and Tanzania have all slashed their domestic petroleum products to lessen its effect on their citizens. Of course, this downward review of domestic prices had been recurring trends in most of these countries that their citizens always and easily adjust to either an upward or downward movement in the prices of crude oil at the international market. For instance, in July 2008, crude oil prices reached its record high of $147 per barrel before it plummeted to $40 and $37 per barrel this year (2009), it automatically reflected as usual on these other countries.
Nigeria being what it is, toed the way of these countries, a move misconstrued to have had political undertone by the elites. The reduction as far as most Nigerians are concerned, was belated. In spite of the litany of governments we have had previously, none made an effort to allow the trends in the international oil market to reflect locally, rather there had been upward review all the way. I think it is proper to give this administration a chance to work for us, we should be supportive. We should not be citing countries earlier mentioned as constantly reviewing their prices as situation demanded since they have been fully deregulated and now reaping the benefits. Nigerians can also join the movement if she should embrace full deregulation of the petroleum sector. But then, will the market indices determine the prices of fuel locally as it reflects the global economics? Although, easy, it will not be, but we should tackle the bull by the horn.
For Nigerians to cry wolf over deregulation is not out of place. Nobody is having it rosy, since even the rich also cry, while the poor yells. Time will tell whether government goofed or not. But for now, lets give kudos for breaking the jinx of perpetual upward review of pump prices.
On Thursday January 22, 2009, history was made in the annals of Nigeria’s downstream sector when government capitulated to the yearnings of majority of Nigerians by announcing a downward review of the pump price of petrol. This move could be termed historical because this seems the first time a major downward review of petrol prices would be announced. It all looked like a case of the impossible becoming possible because petroleum products prices had maintained an upward swing for the past 7 years.
From N20 per litre in 2002 to N75/ N70 per litre in 2007, in a jiffy and without due consultations, the Obasanjo government had increased the prices of petroleum products. But when the present administration came on board, it announced that there will be no fuel hike for the whole of 2008. At the expiration of the moratorium and contrary to Nigerians expectation, the pump price was reviewed downward. This move came with mixed feelings. While some commended the Federal Government for a job well done, others were skeptical towards it as to the rationale for the sudden downward review. As a matter of fact, experience had taught Nigerians to misconstrue every motive of government. They saw the reduction of N5 as another Greek gift from government and a ploy to indirectly flag off full deregulation of PMS. The accusation, government speedily refuted to be an act of benevolence.
Typical of Nigerian Labour Congress (NLC) and the elite groups, the announcement elicited some elements of animosity as these groups viewed government’s action as a way of trying to introduce full deregulation through the back door. Their grouse was that deregulation would further impoverish the poor, while the rich gets richer. They further hinged their argument on the premise that government was likely going to jerk up the price in the future when there is an increase in the international oil market, which will make Nigerians unable to oppose any such move.
However, the issue of inadequate information should be blamed not only on the government who failed to put adequate facilities on ground before embracing deregulation, but also on NLC for failing to grasp the reality on ground to see deregulation as an inevitability. It is quite clear that NLC does not want to be seen as anti-masses hence chose to play to the gallery. Labour Union in Nigeria are not ignorant about deregulation, at least what obtains at the telecommunication industry is one life example, and consumers are at liberty to choose whatever network that appeals to them. They are no more under any compulsion about which service provider to patronize. This has ushered in the era of stiff competition among the network providers, with one provider trying to outwit the other in a highly competitive market. Sim cards are now free unlike what was obtainable initially. The NLC knows the fact but failed to enjoin the government to educate the masses on the need to embrace deregulation.
It is a right and not a privilege for Nigerians to be dully informed of what deregulation really is and their benefits. This inadequate publicity during the initial implementation stage of deregulation was the reason for the antagonistic attitude towards every government policies by Nigerians. But should we allow this to continue? The answer is no! Whether Nigerians like it or not, deregulation will surely come, albeit, like a thief in the night. Deregulation of the downstream petroleum sector is the only remedy to the abnormalities inherent in the industry.
The global economic recess, the spikes in the Middle East and natural disasters that took place in some countries have surely affected crude prices adversely, forcing countries to review their domestic petroleum products to reflect global trends. A cursory look at some of these countries revealed that South Africa, Guinea, Kenya, Burundi, Rwanda, Zambia, and Tanzania have all slashed their domestic petroleum products to lessen its effect on their citizens. Of course, this downward review of domestic prices had been recurring trends in most of these countries that their citizens always and easily adjust to either an upward or downward movement in the prices of crude oil at the international market. For instance, in July 2008, crude oil prices reached its record high of $147 per barrel before it plummeted to $40 and $37 per barrel this year (2009), it automatically reflected as usual on these other countries.
Nigeria being what it is, toed the way of these countries, a move misconstrued to have had political undertone by the elites. The reduction as far as most Nigerians are concerned, was belated. In spite of the litany of governments we have had previously, none made an effort to allow the trends in the international oil market to reflect locally, rather there had been upward review all the way. I think it is proper to give this administration a chance to work for us, we should be supportive. We should not be citing countries earlier mentioned as constantly reviewing their prices as situation demanded since they have been fully deregulated and now reaping the benefits. Nigerians can also join the movement if she should embrace full deregulation of the petroleum sector. But then, will the market indices determine the prices of fuel locally as it reflects the global economics? Although, easy, it will not be, but we should tackle the bull by the horn.
For Nigerians to cry wolf over deregulation is not out of place. Nobody is having it rosy, since even the rich also cry, while the poor yells. Time will tell whether government goofed or not. But for now, lets give kudos for breaking the jinx of perpetual upward review of pump prices.
On Thursday January 22, 2009, history was made in the annals of Nigeria’s downstream sector when government capitulated to the yearnings of majority of Nigerians by announcing a downward review of the pump price of petrol. This move could be termed historical because this seems the first time a major downward review of petrol prices would be announced. It all looked like a case of the impossible becoming possible because petroleum products prices had maintained an upward swing for the past 7 years.
From N20 per litre in 2002 to N75/ N70 per litre in 2007, in a jiffy and without due consultations, the Obasanjo government had increased the prices of petroleum products. But when the present administration came on board, it announced that there will be no fuel hike for the whole of 2008. At the expiration of the moratorium and contrary to Nigerians expectation, the pump price was reviewed downward. This move came with mixed feelings. While some commended the Federal Government for a job well done, others were skeptical towards it as to the rationale for the sudden downward review. As a matter of fact, experience had taught Nigerians to misconstrue every motive of government. They saw the reduction of N5 as another Greek gift from government and a ploy to indirectly flag off full deregulation of PMS. The accusation, government speedily refuted to be an act of benevolence.
Typical of Nigerian Labour Congress (NLC) and the elite groups, the announcement elicited some elements of animosity as these groups viewed government’s action as a way of trying to introduce full deregulation through the back door. Their grouse was that deregulation would further impoverish the poor, while the rich gets richer. They further hinged their argument on the premise that government was likely going to jerk up the price in the future when there is an increase in the international oil market, which will make Nigerians unable to oppose any such move.
However, the issue of inadequate information should be blamed not only on the government who failed to put adequate facilities on ground before embracing deregulation, but also on NLC for failing to grasp the reality on ground to see deregulation as an inevitability. It is quite clear that NLC does not want to be seen as anti-masses hence chose to play to the gallery. Labour Union in Nigeria are not ignorant about deregulation, at least what obtains at the telecommunication industry is one life example, and consumers are at liberty to choose whatever network that appeals to them. They are no more under any compulsion about which service provider to patronize. This has ushered in the era of stiff competition among the network providers, with one provider trying to outwit the other in a highly competitive market. Sim cards are now free unlike what was obtainable initially. The NLC knows the fact but failed to enjoin the government to educate the masses on the need to embrace deregulation.
It is a right and not a privilege for Nigerians to be dully informed of what deregulation really is and their benefits. This inadequate publicity during the initial implementation stage of deregulation was the reason for the antagonistic attitude towards every government policies by Nigerians. But should we allow this to continue? The answer is no! Whether Nigerians like it or not, deregulation will surely come, albeit, like a thief in the night. Deregulation of the downstream petroleum sector is the only remedy to the abnormalities inherent in the industry.
The global economic recess, the spikes in the Middle East and natural disasters that took place in some countries have surely affected crude prices adversely, forcing countries to review their domestic petroleum products to reflect global trends. A cursory look at some of these countries revealed that South Africa, Guinea, Kenya, Burundi, Rwanda, Zambia, and Tanzania have all slashed their domestic petroleum products to lessen its effect on their citizens. Of course, this downward review of domestic prices had been recurring trends in most of these countries that their citizens always and easily adjust to either an upward or downward movement in the prices of crude oil at the international market. For instance, in July 2008, crude oil prices reached its record high of $147 per barrel before it plummeted to $40 and $37 per barrel this year (2009), it automatically reflected as usual on these other countries.
Nigeria being what it is, toed the way of these countries, a move misconstrued to have had political undertone by the elites. The reduction as far as most Nigerians are concerned, was belated. In spite of the litany of governments we have had previously, none made an effort to allow the trends in the international oil market to reflect locally, rather there had been upward review all the way. I think it is proper to give this administration a chance to work for us, we should be supportive. We should not be citing countries earlier mentioned as constantly reviewing their prices as situation demanded since they have been fully deregulated and now reaping the benefits. Nigerians can also join the movement if she should embrace full deregulation of the petroleum sector. But then, will the market indices determine the prices of fuel locally as it reflects the global economics? Although, easy, it will not be, but we should tackle the bull by the horn.
For Nigerians to cry wolf over deregulation is not out of place. Nobody is having it rosy, since even the rich also cry, while the poor yells. Time will tell whether government goofed or not. But for now, lets give kudos for breaking the jinx of perpetual upward review of pump prices.
On Thursday January 22, 2009, history was made in the annals of Nigeria’s downstream sector when government capitulated to the yearnings of majority of Nigerians by announcing a downward review of the pump price of petrol. This move could be termed historical because this seems the first time a major downward review of petrol prices would be announced. It all looked like a case of the impossible becoming possible because petroleum products prices had maintained an upward swing for the past 7 years.
From N20 per litre in 2002 to N75/ N70 per litre in 2007, in a jiffy and without due consultations, the Obasanjo government had increased the prices of petroleum products. But when the present administration came on board, it announced that there will be no fuel hike for the whole of 2008. At the expiration of the moratorium and contrary to Nigerians expectation, the pump price was reviewed downward. This move came with mixed feelings. While some commended the Federal Government for a job well done, others were skeptical towards it as to the rationale for the sudden downward review. As a matter of fact, experience had taught Nigerians to misconstrue every motive of government. They saw the reduction of N5 as another Greek gift from government and a ploy to indirectly flag off full deregulation of PMS. The accusation, government speedily refuted to be an act of benevolence.
Typical of Nigerian Labour Congress (NLC) and the elite groups, the announcement elicited some elements of animosity as these groups viewed government’s action as a way of trying to introduce full deregulation through the back door. Their grouse was that deregulation would further impoverish the poor, while the rich gets richer. They further hinged their argument on the premise that government was likely going to jerk up the price in the future when there is an increase in the international oil market, which will make Nigerians unable to oppose any such move.
However, the issue of inadequate information should be blamed not only on the government who failed to put adequate facilities on ground before embracing deregulation, but also on NLC for failing to grasp the reality on ground to see deregulation as an inevitability. It is quite clear that NLC does not want to be seen as anti-masses hence chose to play to the gallery. Labour Union in Nigeria are not ignorant about deregulation, at least what obtains at the telecommunication industry is one life example, and consumers are at liberty to choose whatever network that appeals to them. They are no more under any compulsion about which service provider to patronize. This has ushered in the era of stiff competition among the network providers, with one provider trying to outwit the other in a highly competitive market. Sim cards are now free unlike what was obtainable initially. The NLC knows the fact but failed to enjoin the government to educate the masses on the need to embrace deregulation.
It is a right and not a privilege for Nigerians to be dully informed of what deregulation really is and their benefits. This inadequate publicity during the initial implementation stage of deregulation was the reason for the antagonistic attitude towards every government policies by Nigerians. But should we allow this to continue? The answer is no! Whether Nigerians like it or not, deregulation will surely come, albeit, like a thief in the night. Deregulation of the downstream petroleum sector is the only remedy to the abnormalities inherent in the industry.
The global economic recess, the spikes in the Middle East and natural disasters that took place in some countries have surely affected crude prices adversely, forcing countries to review their domestic petroleum products to reflect global trends. A cursory look at some of these countries revealed that South Africa, Guinea, Kenya, Burundi, Rwanda, Zambia, and Tanzania have all slashed their domestic petroleum products to lessen its effect on their citizens. Of course, this downward review of domestic prices had been recurring trends in most of these countries that their citizens always and easily adjust to either an upward or downward movement in the prices of crude oil at the international market. For instance, in July 2008, crude oil prices reached its record high of $147 per barrel before it plummeted to $40 and $37 per barrel this year (2009), it automatically reflected as usual on these other countries.
Nigeria being what it is, toed the way of these countries, a move misconstrued to have had political undertone by the elites. The reduction as far as most Nigerians are concerned, was belated. In spite of the litany of governments we have had previously, none made an effort to allow the trends in the international oil market to reflect locally, rather there had been upward review all the way. I think it is proper to give this administration a chance to work for us, we should be supportive. We should not be citing countries earlier mentioned as constantly reviewing their prices as situation demanded since they have been fully deregulated and now reaping the benefits. Nigerians can also join the movement if she should embrace full deregulation of the petroleum sector. But then, will the market indices determine the prices of fuel locally as it reflects the global economics? Although, easy, it will not be, but we should tackle the bull by the horn.
For Nigerians to cry wolf over deregulation is not out of place. Nobody is having it rosy, since even the rich also cry, while the poor yells. Time will tell whether government goofed or not. But for now, lets give kudos for breaking the jinx of perpetual upward review of pump prices.
