China reduces price of petrol products, as Nigeria prices constantly soar

petrol station fuel

 China says it is acting based on international oil markets

While the Federal Government in Nigeria is making efforts to completely deregulate the downstream sector of the petroleum industry that will see an increase in pump price of petrol from the current (official) N97 to at least N141 per litre, the Chinese Government has for the fourth time this year reduced the price of petrol for its motorists.

Starting from Friday, Chinese motorists will pay a reduced price for petrol and diesel. In China, price for petrol per litre has been reduced by 0.22 yuan (N5.5) while the price per litre of diesel has been reduced by 0.26 yuan (N6.6).

The price reduction is the fourth in 2012.

The regulatory National Development and Reform Commission, NDRC, said on Thursday in a statement that the cuts followed a drop in the cost of crude oil in the international market which was affected by the presidential election in the United States and the slow recovery of the global economy.

“International oil prices have tumbled. WTI and Brent oil futures dropped to $85 a barrel and $105 a barrel, respectively, as of the start of November,” the NDRC said in a statement on its website.

The cut which takes effect on Friday represents a decrease of 3.2% for petrol and 3.4% for diesel on the ceiling benchmarks of CNY9, 640/tonne and CNY8, 820/tonne respectively.

As at Wednesday, the value of China’s crude basket had fallen by 4.36% since September 7.

Under the country’s oil-product pricing system, which started in 2008, domestic fuel prices may be adjusted when the moving average of the basket of international crudes change more than 4% over the 22-working-day period.

China imports nearly half of its oil requirements and the NDRC determines the price of the products based on international market forces.

The NDRC last adjusted petrol and diesel prices on September 11 this year, adding CNY550/ tonne and CNY540/tonne respectively, to reflect rising international oil prices.

China’s system is a bit different from Nigeria’s. Though prices are adjusted based on international price of crude, the government still determines how much petrol and diesel are sold to the citizens to avoid exploitation by fuel stations.

The Nigerian Government has said it needs to completely deregulate petrol to make it readily available. Diesel is already completely deregulated and marketers choose how much they want to sell to motorists.

  • Innocent

    China buys crude from Nigeria but have managed to make petrol, one of the end products of crude, cheap for its citizens. N5.50k per litre! I fear for my country.

  • Afam

    You forget to tell Nigerians that china have over 20 refineries built for over 20 years ago,as long as we continue to import,the price will continue to soar and looting will continue,journalism and use of FOI bill should base every story on truth and true fact of the situation,am not happy with the condition but we must not undermine the efforts of the government to clean the decades of corruption in our oil sector.

    • NAGODI

      DONT EVEN MENTIONED CHINA NIGER REPUBLIC BUILD A REFINERY IN TWO YEARS THAT REFINES 100,000 BARRELS PER DAY. THEY DID NOT SPEND A KOBO! THEY JUST CALL CHINA AND SAY BUILD IT FOR US AND WE PAY AS WE SELL THE REFINED PRODUCT! JONATHAN HAS BEEN IN POWER NOW FOR TWO YEARS, NOT EVEN A REPAIR OF ONE OF THE 4 REFINERIES HAS BEEN PROPOSED LET ALONE CARRIED OUT. A COMPLETE OVERHAUL OF ALL OUR REFINERIES CAN BE DONE IN A YEAR AND NIGERIA WILL NOT HAVE TO SPEND A KOBO! COMPANIES WORLD WIDE WILL LINE UP TO FIX THE REFINERIES AND EITHER BE PAID IN CRUDE OR WE PAY AS WE SELL.
      THEIR IS ZERO EFFORT FROM THIS CORRUPT GOVT TO CLEAN UP ANYTHING. EVEN A RETARD CAN SEE THIS. THE FACT THAT THEY OPTED FOR FUEL PRICE HIKE IN STEAD OF FIXING THE REFINERIES TO STOP IMPORTATION SHOWED THE DIRECTION THEY WISH TO TAKE. FROM THAT SAD DAY IN JANUARY AFTER THE PRICE HIKE ONLY THOSE BENT ON MISCHIEF WILL EXPECT ANYTHING GOOD FROM JONATHAN.

  • NAGODI

    ITS HEAD WE LOSE TAIL THEY WIN. SINCE THE DAYS OF IBB AND HIS CORRUPT GOVT THE NIGERIAN GOVT HAS INCREASED PRICES OF FUEL AS INTERNATIONAL PRICE OF CRUDE INCREASES UNDER THE PRETEXT THAT WE IMPORT REFINED PRODUCT INTERNATIONALLY. AND WHEN CRUDE PRICES FALL INTERNATIONALLY THEY STILL INCREASE THE PRICE OF FUEL WITH THE NEW PRETEXT THAT NIGERIA HAS LOST REVENUE AND CANT AFFORD TO SUBSIDISE FUEL.
    A NATION WITH GREAT POTENTIAL AND RESILIENT SPIRIT HAS BEEN SMOTHERED AND STRANGULATED BY RULERS WHO CANT SEE BEYOND THEIR NOSES, CANT THINK BEYOND THEIR POCKETS AND CANT HEAR BEYOND THEIR SYCHOPANTS.

  • Udo

    Nigeria my ass. We people give them chance to mess up. Any time, day, the people say enough, it’ll be enough.

  • Dr Pat Kolawole Awosan,Canada.

    Nigerian political leadership understand only one language,spending public funds just on anything they deem it fit on,regardless of if it is tax payers funds and nothing on the ground to show for it.
    A nation like China that care about it citizenry welfare and impact of skyrocketting oil products prices would struggle to find a way out to reduce oil products prices.
    But not in Nigeria president Jonathan regime which increased fuel price from N65 per litre to N142 naira per litre but was forced to reduced it down to N97 naira per litre by national strile.
    China government works and cares for the welfare of its people while Nigerian government careless and the president Jonathan does not give a damn.
    Dr Pat Kolawole Awosan,
    Canada