FG reduces price of petrol by N10 per litre

The Fedeal Government on Sunday announced a downward review of the pump price of petrol from N97 to N87. Africa’s largest oil producer Nigeria announced a cut in petrol prices, a month before the country votes in presidential and parliamentary elections. Minister of Petroleum Resources Diezani Alison-Madueke announced the review at an  evening press conference. She said that the new price regime would take effect at midnight on Sunday. According to the minister, President Goodluck Jonathan approved the new price following  the recent volatility in the oil market. The second time the Federal Government ever dropped prices of petrol. The first was during the administration of Late Umaru Yar’Adua! when the government reduced the price of petrol for similar reason. Nigeria depends on crude exports for 70 percent of government revenue and some 90 percent of its foreign exchange earnings. With the historic fall in oil prices, Jonathan’s administration has had to introduce austerity measures and devalue the naira currency, directly affecting the standard of living for Nigerians. Nigeria extracts around two million barrels of crude a day but imports most of its fuel as it does not have refining capacity. Subsidies are used to keep prices low at the pumps. In late 2011, Jonathan tried to remove the subsidies, causing a general strike and mass protests, which saw them reintroduced but to a lesser degree.