Petrol sub­sidy to be cut by half

The Star Early Edition - - BUSINESS REPORT INTERNATIONAL -

NIGE­RIA plans to cut sub­si­dies on pe­tro­leum prod­ucts by half next year after sharp falls in global crude prices spurred the gov­ern­ment to re­vise its 2015 bud­get down­wards, data from the re­vised bud­get showed on Fri­day. Pres­i­dent Good­luck Jonathan sub­mit­ted the re­vised bud­get fig­ures to legislators last week, propos­ing to spend 458.68 bil­lion naira (about R28.4bn) on petrol sub­sidy next year, down from 971.14bn naira pre­sented for this year. It also as­sumed fur­ther cuts to petrol sub­si­dies in 2016 to 408.68bn naira and 371.18bn naira for 2017. Nige­ria’s fi­nance min­is­ter has pro­posed low­er­ing the as­sumed bench­mark oil price for the coun­try’s 2015 bud­get to $73 per bar­rel from the $78 pro­posed in Septem­ber, after global crude prices col­lapsed. Ngozi Okon­joIweala said on Thurs­day that de­clines in the price of oil, which has lost almost 30 per­cent since July, would im­pact Africa’s largest econ­omy and top oil pro­ducer, re­quir­ing the gov­ern­ment to re­duce non-es­sen­tial spend­ing and raise more rev­enues. – Reuters

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