Fuel price: Rise, rise and rise again

Nigeria witnessed twelve fluctuations in petroleum product prices, particularly petrol, since the return to democratic rule in 1999. Most of the adjustments have been on up side with the regime of Obasanjo accounting for the highest price fluctuations. Increases in fuel price over the years were almost always greeted by protests among Nigerians as the pump price of petrol affected every aspect of the economy, from transportation, power to food.

When Nigeria returned to democratic rule with Olusegun Obasanjo as president in 1999, the price of PMS had dropped from N25 to N20 per litre under General Abdulsalami Alhaji Abubakar’s military regime of June 1998 to May 1999. Fuel price first increased under Obasanjo on June 1, 2000 from N20 to N30 and on June 8, 2000 it dropped to N22 per litre following protests led by the Nigeria Labour Congress, NLC. The price rose again on January 1, 2002 to N26 and in June, 2003 to N42 per litre.

The price continued its upward trend in May 29, 2004 from N42 to N50; August 25, 2004 from N50 to N65 and May 27, 2007 from N65 to N75 per litre. President Umaru Musa Yar’adua however reversed the price of petrol back to N65 until January 1, 2012 when President Jonathan increased the price to N141 per litre but the ensuing labour strike forced him to lower the price on January 17, 2012 to N97 and on February, 2015 he dropped it further to N87 per litre.

Current President, Muhammadu Buhari increased the price of petrol from N87 to between N143 and N145 on Wednesday, May 11, 2016. The price has remained within the 143-145 price band. All indications are that this is not sustainable as NNPC also bears the heavy burden of having to subsidise the product by N20 per litre due to the combined factors of rising oil price, inadequate forex for private importers and logistics problems.