According to a new report by Bloomberg has indicated that Nigeria's fuel price is one of the cheapest in the world. Bloomberg reported that Nigeria's selling price of N145 which is equivalent to $0.40 a liter, and $1.52 per gallon makes it one of the 10 cheapest places in the world to buy gasoline compared to a global average of $1.12 and a U.S. average of $0.73 per liter. The report read in part:
"Part of the problem is that, despite pumping 1.8 million barrels a day of crude, Nigeria has to import almost all its fuel because of the decrepit state of its refineries. But in that, it isn’t alone: Most countries in Africa lack refineries. A bigger problem is that Nigeria caps gasoline prices, often at levels below retailers’ costs.
"The cap today is set at 145 naira, or $0.40, a liter, which would translate to $1.52 per gallon. That makes the west African nation one of the 10 cheapest places in the world to buy gasoline and compares to a global average of $1.12 and a U.S. average of $0.73 per liter, according to GlobalPetrolPrices.com."
Nigeria's selling price of N145 is cheap according to the report. Credit: Bloomberg
"Fuel prices are a hugely sensitive issue in Nigeria. Given the poor state of schools and hospitals, many citizens feel that cheap fuel is about the only benefit they get from their government.
When Goodluck Jonathan, Buhari’s predecessor, tried to end subsidies and hike prices in 2012, nationwide protests crippled the country, forcing him to backtrack. Buhari, 75, who won elections in 2015 by appealing to Nigeria’s poor masses, increased prices the following year only after weeks of shortages forced his hand.
"He will be loathe to do it again, especially with elections coming up in early 2019 and his popularity already dented by a weak economy and rising unemployment," the report read.