There were strong indications yesterday that the Federal Government of Nigeria would increase the fuel pump price in 2013. Nigerian President Goodluck Jonathan had on Thursday in Abuja said total fuel subsidy removal was a must. He stated that only total removal of subsidy on petroleum products would attract investors to the oil sector and end the importation of fuel.
Local news agency investigations have revealed that the President’s statement was a prelude to another partial deregulation in 2013 because the N971bn fuel subsidy budget for 2013 would not sustain importation of the product throughout the year.
The amount is N83bn or 9.35 per cent higher than the N888bn that is currently being spent in the 2012 fiscal year. It was reliably gathered that government had opted for a phased deregulation of the downstream sector, which would lead to a price hike.
Top sources, in the oil industry, who spoke with
reporters in Abuja, said the hike in fuel prices next year was “inevitable.”
The sources who pleaded on anonimity because they were not authorised to speak
on the matter, said Nigerians should prepare for the new price regime. One of
the sources said government was considering two options in 2013.
He said, “It is either the current fuel scarcity
continues or the government embarks on another partial deregulation, leading to
another price increase.
“But from all indications, the government will go for the
second option. Another price increase is inevitable in 2013.”
It would be recalled that the Nigerian government had in
January hiked the pump price of petrol from N65 to N141 but was forced to
reduce the price to N97, following mass protests organised by civil society
groups.
Meanwhile, civil society groups have told the Nigerian
Federal Government to expect the mother of all strikes if subsidy is removed.
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