There will be more money for the 2021 budget implementation as the crude oil price on Monday hit $71/ barrel which doubles the $30 benchmark.

But the spike in crude oil price implies that Nigerians will pay more for a litre of petrol as the landing cost will also rise, experts have said.

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Brent crude on Monday rose above $70 a barrel for the first time since the COVID-19 pandemic began; while U.S. crude touched its highest in more than two years following reports of attacks on Saudi Arabian oil facilities.

Yemen’s Houthi forces had fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports in what Riyadh called a failed assault on global energy security.

Nigeria had witnessed scarcity of petrol in the last two weeks with the Nigerian National Petroleum Corporation ruling out any price increase this month.

The NNPC had said it had enough stock of petrol to keep the nation well supplied for over 40 days and urged motorists to avoid panic buying while ruling out any increase.

Higher oil prices have implications — Experts

Experts, who spoke to Daily Trust on the implications of the high price of crude oil for the local market, said the government would reap big, but Nigerians might not benefit from it.

An oil and gas expert, Brown Ogbeifun said Nigeria would reap an abundance of excess in terms of income generated from oil.

“For instance, the new oil price is over $30 above the 2021 budget benchmark.

“This will mean having some money for the budget implementation instead of borrowing, and also have some excess that could go into the Sovereign Wealth Fund”, he said.

He said apart from capable of causing inflation, any further fuel price hike “also has indirect price impacts on manufacturing and transportation”.

An Abuja-based economist, Simon Galadima, said the increase in the price of crude oil “is a double-edged sword: it has both good and bad sides.

“The implication for the Nigerian economy is that government revenue will increase and foreign exchange earnings will also go up.

“When government revenue increases, that’ll mean more money to spend on education, health, infrastructure and fight insecurity.

“It also means the value of the Naira will be propped up as forex earnings shoot up. That’s less dollar scarcity hence better value for the naira”.

Another expert, Tope Fasua, said Nigeria should look away from crude oil as it would keep on fooling the country to believe it is rich.

He said Nigeria should capitalize on its abundant human resource to develop itself.

Fuel subsidy again

Director-General, Lagos Chamber of Commerce and Industry, Muda Yusuf, said NNPC might resort to fuel subsidy to bridge the gap in the landing cost and an affordable rate of petrol for Nigerians.

“We would see a resurgence of fuel subsidies and associated fiscal leakages.

“Smuggling of petroleum products will intensify. These are the flip sides of rising crude oil prices,” he said.

Deputy President, Independent Petroleum Marketers Association of Nigeria, Debo Ahmed, said “it’s not the pricing that’s a problem, but the exchange rate differential.”

“Since we’re importing and are not refining locally, you should expect that it’ll affect the price per litre.”

A member of IPMAN, Abdulrasheed Olapade, asked Nigerians to expect an increase in fuel price, saying “no marketer would sell at the government approved price when he is buying at a higher price from third parties especially as the product is not even within their reach as they have to depend on NNPC for supply.”

NNPC, Petrol Ministry mum

When contacted n Monday, the spokesman of the Minister of State for Petroleum Resources, Timipre Sylva, Garbadeen Muhammad, told one of our correspondents that the minister could only respond on Tuesday.

The NNPC’s spokesman, Kennie Obateru, did not respond to an enquiry by Daily Trust.

https://dailytrust.com/fuel-price-hike-looms-as-crude-oil-hits-71-barrel

Our Oil people

Nothing dey favour us for this country....

Ordinary drinking water sef dey cost


The oil wey dem dey use du excuse of not getting it right don dey rise like BP buh still e no go get any impact on the masses instead na more sufferness we go dey see....

When Goodluck was in power, Oil was over 100 dollar and we had excess money and Fuel was cheap.

Buhari the cry baby came to power and blamed poor oil price for hardship body odour he came with and said he can't do much because oil is at its lowest. Sai Baba idiots nodded like lizards

Now oil is now almost as Goodluck, Fuel prices keeps rising, The blessing we ought to be enjoying turned out to be a curse.

I wonder what Sai baba idiots will say this time around

The govt is busy pretending about the impending price hike and labour has become as useless as the P in psychology.. We are in for a loooong bumpy ride in dis country

Damnnn niggarrrr
Isoright

I thought buharist told us fuel price was high because global oil price was heading towards zero?
why is fuel price now getting higher while global oil price starts growing up?


Buharmetrics.

Which loom again?
Gas station have increased it by over #10 since last week in Lagos

NIGERIA UNDER BUHARI


No hope at all....

If na joke they should stop it

Have they been reducing the fuel price when oil market price was around $50?

Explain?

We have a toothless labour in this our country, they are as useless as the P in psychology.

Go to UAE and you see the wonders of oil money, go to Qatar and you are in awe of how Oil money has been a blessing to them.

Come to Nigeria, go to cities like PH, Delta, Bayelsa , Edo and you'll cry out your eyes , indeed we have never enjoyed the dividend of Oil money.

Why is Nigeria so different when compared to other Nations of the earth?

There is poverty everywhere, hunger is rife yet somebody prides himself as the richest man in Africa when in fact his home state is riddled with lots of street urchins and poverty stricken Individuals.


I always ask this question, Will Nigeria ever get better?

I need answers pls.

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https://dailytrust.com/fuel-price-hike-looms-as-crude-oil-hits-71-barrel

Nigeria
Crude oil price crashes, pump price goes up.
Crude oil price appreciates, pump price goes up.
SMH

Buhari's government always use the low price of crude oil to give excuses why he is not fulfilling his campaign promise.Now that the crude oil price has reached $60,there is no excuse to make.

Nigeria have no mekwatarism....QED

Why this country hard like this?

Na wa oo!

Increase it if you want

Funny Country.

FUEL PRICE INCREASE: It does not improve the lives of the general masses.

FUEL PRICE DECREASE: It adds more pain for the masses.

This is good news for oil producing countries that have proactive leaders with their thinking cap on.
Howbeit it's bad news for Nigeria due to CLUELESS LEADERSHIP! SMH
As a youth in Nigeria it's paramount to know that your present location should not determine how much you can make daily,weekly or monthly....see yourself as a citizen of the world and use the power of IT & Internet as a legal tool to earn residual income.
I'll always advocate for online investments or ventures to create long term residual income.

Imagine making $50 on a daily for the rest of your life on earth or $3k monthly with a Cash and Time investment of $8k and @most four hour work time online....

As the world is becoming a global village so many smart people are getting to know that your location can't impede your investment or income spread and profit margins.

You'll be in any part of the world and create streams of income for yourself and family. However it is better to stay where you feel safe and can access so many lovely social and human amenities reason ill relocate out of Nigeria soon.

As a youth look and connect with this new income ideology and cure your been broke issue permanently!



Proactivity Leads To Productivity!!!

@seniorwriter

That's why I keep asking, how did we bought petrol at a pump price of #65-97 naira during GEJ era, even with the so called subsidy corruption?


But under this administration, any increase in the price of crude oil barrel means there will be increase in the pump price? Please don't say this administration isn't paying subsidy, because they are paying.


Last last, the corruption under this administration might not be different from the corruption during the last administration or even more.

Hmmmm....

The person wey swear for this country no try sha... Even something wey suppose be good news na bad news...

Well let us wait for Darling Son to come and sing praises to his darling daddy

Nigeria is design to SUFFER and frustrate her masses/citizens


Just name one thing that Nigerians don’t suffer to get from their government ?

Nigerians are now used to suffering so they smile while they suffer in their day to day life

lagusboyyy:
Funny Country.

FUEL PRICE INCREASE: It does not improve the lives of the general masses.

FUEL PRICE DECREASE: It adds more pain for the masses.

That's the irony. Then yhu wonder if our leaders actually have sense at all.

Whatever.

$71 per barrel is good foreign exchange.

Will APC stop complaining?