Oil Crisis: APC accuses Nigerian govt of fraud, says price cut too meagre

Lai Mohammed

The All Progressives Congress, APC, has accused the Federal Government of making a show out of deceit by its so-called fuel price reduction, saying a 10.3 per cent slash in the price of petrol (from 97 to 87 Naira) is a mere tokenism at a time the price of crude oil has crashed by about 60 per cent.

In a statement issued in Lagos on Monday by its National Publicity Secretary, Lai Mohammed, the party said the pump price of a litre of fuel should not be more than 70 Naira, meaning that at 87 Naira per litre, the government is forcing Nigerians to subsidize the massive corruption in the oil sector by 17 Naira for every litre of fuel.

”When crude oil was selling at 100 dollars per barrel, the landing cost of PMS without subsidy was 125 Naira per litre. Now that the oil price has crash to about 44 dollars per barrel, landing cost without subsidy is about 65 Naira per litre. The same goes for diesel which should not sell for more than 90 Naira per litre,” it said.

APC said while governments of countries which are not as economically endowed as Nigeria have reduced the pump price of fuel as far back as early January 2015, Nigeria that is the world’s sixth largest producer of oil is just announcing a price slash that is far below those countries.

”Early this year, Zambia slashed the price of petrol by 23 per cent while Tanzania reduced the pump price of the product by 16%. In the US, which until recently was importing crude oil from Nigeria, the price of fuel has fallen for 113 consecutive days as of Jan. 16. Therefore, the 10.3% price slash in Nigeria is too meagre too late,” the party said.

It said the real reasons that the Nigerian government has delayed slashing the price of imported petroleum products following the crash in crude oil prices are the massive corruption in the oil sector and lack of political will on the part of the country’s leadership.

”With Nigeria depending on importation of petroleum products to meet about 90% of its domestic consumption, the country is relying heavily on term contracts entered into with petroleum product trading companies to meet its domestic demand. It is possible that the petroleum products pricing formulas embedded in these contracts, which generally run for up to 1-1/2 and in some cases 2 years, have not anticipated these low prices.

”Therefore, unless the government moves to renegotiate the contracts now, it may not reap the full benefits of the decline in petroleum prices. But here is the catch: Since the government and its agents have skimmed off huge ‘commissions’ from the firms with which the term contracts were signed, it could not possibly go back and renegotiate those contracts or go into new forward contracts that will reflect the current reduction in crude oil prices.

”It takes a strong willed, determined and transparent leadership to immediately call in the petroleum products contracts for re-negotiation, as this will represent a huge blow on corruption in the sector since clearly ‘commissions’ would have been paid by petroleum product traders on the existing contracts. This explains the token reduction in fuel price, which the government must have hoped will fool an unsuspecting public, especially a few weeks to elections,” APC said.

The party also wondered why the PDP-led federal government had to wait for a widely-publicized call from the APC Presidential Candidate, Gen. Muhammadu Buhari, and some other concerned Nigerians before doing what the government of other countries in Africa and elsewhere around the world have already done: slash the price of petroleum products commensurate with the fall in crude oil prices.

It called on the PDP federal government to immediately slash the price of petrol to 70 Naira per litre and the prices of diesel and kerosene to nothing more than 90 Naira per litre each way, and stop stealing from Nigerians who have been pauperized by its bad record of governance since 1999.


DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: Revealed!!! The Only Way Left of Getting an Extra Large Manhood and also Last Up to 38Mins+. Get the Insider Secret Here


TEXT AD: This NAFDAC APPROVED Solution Will Make You Stay Longer Than 40Mins In Bed Tonight And Help Your Erection. Click Here To Read The Free Reports


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.


  • tundemash


    APC accuses Nigerian govt of fraud”

    Haba Lai Mohammed, why are you saying the truth so loudly ? Even an old crook (poser boy of corruption) like Robert Mugabe knows he has a master.

  • bib

    That’s exactly what an opposition that is only few weeks from taking over the govt, God willing should be doing. Discussing issues that affect the populace, not peddling lies about somebody dying.

    • eBusinesz

      Please we need your kind advice to the government now that they are in power
      I know you must hiding under your bed now or out blaming GEJ for oil price
      we want them to make oil price 60 naira its @ $33/Barrel
      Say what you believe!

      • bib

        Everybody, not only the government, is blaming GEJ government. Everybody has seen the profligacy and plundering GEJ government indulged in. They became so heartless, even money meant to buy arms for protection on Nigerians against insurgents were unashamedly plundered. Money in their personal vaults was more valuable to them than the lives of our soldiers and citizens. The country’s economy has bee left in shambles. So we all need to sacrifice and be patient with PMB government to pick up the pieces and make the economy whole again. May Allah help us all.

  • Truthometer

    What do you expect from Dumbo and his wrecking crew called cabinet? They are busy reaping ordinary Nigerian off, of their hard earned money. Dumbo and PDP are running the most corrupt, directionless, inefficient, gangster-like, wicked, divisive, vindictive and clueless government, in the history of modern world. But, help is on the way. GMB all the way, come Febuhari 14th.

    • warry

      Cost of crude is only one of the components involved in determining the pump price of petrol. Other factors like cost of refining, tranporting to and from place of refining, handling charges are the same.So APC geniuses how will the percentage reduction in the cost of crude alone reflect fully in the pump price. Apart from that crude oil our only source of revenue is now selling at a ridiculously low price.If you are the one in Govt from which source do you get money to pay salaries and fight BH? Most times in criticizing Gej we display our emptiness and those who are empty clap.

    • eBusinesz

      Please we need your kind advice to the government now that they are in power
      I know you must hiding under your bed now or out blaming GEJ for oil price
      we want them to make oil price 60 naira its @ $33/Barrel
      Say what you believe!

      its time for your intelligent govt to act. help advice them, or your talking from both sides of your mouth as usual

  • Omooba Adekunle Orafidiya

    Basket-mouth Lai Mohammed, shut the eff up. You and your Bokoharamic party are a complete nuisance.

  • Juliet Okoro

    Nigeria is in trouble, this is the change APC is saying when they don’t even understand the forces of economy. In fact this has confirmed it that APC is bunch of clueless and vision less people that has nothing to offer rather are desperate for power. Failures

    • Yusuf

      but you havent explained anything about the forces of economy. This is a very trivial economic issue of a controlled market determined by government policy. when ever price go above N97 govt decided to pay the marketer the market difference plus a markup, now the product is selling far less than N97, are they sharing the positive difference with u or have they told u the huge difference it is residing

      • Juliet Okoro

        My brother the price is determined by the International market, if tomorrow the price of crude oil increases and the pump price increased you APC people will still find something to say. Pls be objective and be truthful to yourself when it comes to the economy and forget party affiliation

    • rhad

      Guy or lady who is more clueless? you – who want to criticize but ended up nothing saying anything other than APC is clueless, a name that has been adopted as the 4th name for jonathan. What do you mean by forces of the economy? do you mean forces of demand and supply? or the economic variables? if you mean the former, common sense should tell you that APC is on point. Also, note that forces of demand and supply is responsible for crude oil price crashes because supply is more than demand (OPEC is not ready to reduce supply and demand is shrinking) simple SSS 1 economics price should ordinarily be reduced until equilibrium is restored or PDP – that wait for APC especially Buhari to advocate for it(fuel price reduction) before PDP reduce the price or APC that made case for it. You are as brilliant as jona who want to run automobile industry without power and Agbaje that want to give Lagosians free internet without power.

      • Juliet Okoro

        This is exactly the foolishness of APC and its supporters, what makes you think it was APC that made Jonathan to reduce the fuel price, it is normal that the price will be reduced after due consideration of the stability of crude oil prices in the International market. You people are afraid that PDP is taking over Lagos, you have not seen anything yet. Its people like you that vandalize power lines in a bid to say the government is not working, just yesterday the minister of power said pipeline was vandalized and there will be drop in electricity and I know you will be happy. APC should go and sit down

        • eBusinesz

          Please revisit this page
          its time for APC to do the needful

      • eBusinesz

        Please we need your kind advice to the government now that they are in power
        I know you must hiding under your bed now or out blaming GEJ for oil price
        we want them to make oil price 60 naira its @ $33/Barrel
        Say what you believe!

      • Mekus

        Hey! Are you still alive? APC government just increeased petrol price by about 80%. Say something na.

  • Yusuf

    meager is an understatement, we need answers

  • eBusinesz

    Please Lai Mohammed help us with How you arrived at your figures of 70naira, Is there subsidy or no subsidy

  • eBusinesz

    I hope this govt can now act the talk!!!
    laughing in spanish
    talk is always cheap

  • Datti

    It is still very difficult for me to believe that all your actions were altruistic. With time and with more information, you may not be the hero you wish for yourself

  • Gabriel Olasebikan

    Datti,Buhari has lost it.