History of oil prices fluctuations from 1973 to 2020 in Nigeria

History of oil prices fluctuations from 1973 to 2020 in Nigeria

On Wednesday, September 2, 2020, the Nigerian Private Owners Association (IPMAN) directed its children to increase the price of petrol to N162 per liter.

Ipman said she took the decision as a result of the Nigerian government's increase in fuel prices to N151.56k.

This is the third time the government has changed oil prices in recent months, but contrary to some of the times, oil prices have risen sharply in recent years.

Since the ascension of President Muhammadu Buhari to power in Nigeria, there has been a rise in oil prices at various times, as has been the case in previous administrations.

Although this is not the first time that oil prices have risen in the country, it has caused a great deal of controversy.

The BBC examines the history of rising oil prices in the country by past leaders, from the time of General Yakubu Gowon to the present.

General Yakubu Gowon was the first president to raise oil prices

In 1973, General Yakubu Gowon increased the price of petrol, which could be said to be the first, from six kobo to eight and a half kobo, or 40.8 percent per liter.

In 1976, General Murtala Muhammad increased the price of oil from eight and a half kobo to nine kobo, or 0.59% per liter.

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On October 1, 1978, General Olusegun Obasanjo increased the price from nine kobo to 15.3 kobo, or 70 percent per liter.

On April 20, 1982, Alhaji Shehu Shagari again increased the price from 15.2 kobo to 20 kobo, or 30.71 percent, per liter.

On March 31, 1986, General Ibrahim Babangida again increased the price from 20 kobo to 39.5 kobo, 97.5 percent per liter.

General Babangida increased the price again on April 10, 1988, from 39.5 kobo to 42 kobo, 6.33 percent per liter.

On January 1, 1989, General Babangida again increased the price from 42 kobo to 60 kobo for non-government vehicles.

On December 19, 1989 he returned the price to everyone.

General Babangida again increased the price from 60 kobo to 70 kobo on March 6, 1991. This increase was 16.67 percent.

Interim Chief Ernest Shonekan also made the same price increase on November 8, 1993, from 70 kobo to five naira, an increase of 64%

Nigerian leaders increase oil prices during their rule

On November 22, 1993, General Sani Abacha reduced the price of oil from five naira to three naira and 25 kobo, a 35 per cent reduction per liter.

On October 2, 1994 and General Abachan increased the price from three naira and 25 kobo to 15 naira, an increase of 361.54%.

On October 4, 1994, Abacha again reduced oil prices from N15 to N11, a decrease of 26.67%.

General AbdusSalam Abubakar also increased the price from N11 to N25, an increase of 127.27%, on December 20, 1998.

In January 1999 it also reduced the price from N25 to N20.

Chief Olusegun Obasanjo increased the price of oil from N20 to N30 on June 1, 2000.

On June 8, 2000 Obasanjo reduced the price from N30 to N22, a reduction of 10 percent.

Obasanjo again increased the price from N22 to N26 on January 1, 2002.

Chief Olusegun Obasanjo has increased oil prices nearly five times during his tenure

In June 2003 Obasanjo again increased the price from N26 to N42.

On May 29, 2004 and Chief Obasanjo returned the price of oil to N50. An additional 19.05%.

On August 25, 2004 he again increased the price to N65.

Obasanjo's last increase in oil prices was on May 27, 2007, when oil rose to 75 naira, an increase of 15.38%.

President Umaru Musa Yar'Adua reduced oil prices from 75 naira to 65 naira in June 2007.

Umaru Yar'Adua is the only one who has not increased oil prices among the leaders who have ruled Nigeria since 1973.

On January 1, 2012 Goodluck Jonathan tried to increase the price to between N138 and N250.

There were protests against the withdrawal of Jonathan's proposed subsidy

In January 2015, President Jonathan reduced the price from N97 to N87.

Increased oil prices during Buhari's rule

The first increase in the price of oil by the government of President Muhammadu Buhari was to allow the sale of oil at N87 and 50 kobo at a commercial petrol station although the price has not changed at NNPC petrol stations.

No further increase in oil prices has been reported since Wednesday, May 11, 2016, when President Buhari's government returned N145.

March 2020 - The fall in oil prices on the world market again forces the government to reduce oil prices from N145 to N125.

A month later, for the second time in May 2020, the PPPRA Petroleum Price Index announced a new price from N121.50 to N123.50 per liter.

Then on Wednesday, September 2, 2020, the Nigerian Private Owners Association (IPMAN) directed its children to increase the price of petrol to N162 per liter.

The increase follows the announcement by the Nigerian authorities of an increase of N151.56k.

Dependence on oil

Nigeria is a country blessed with oil wealth, on which it relies on its income.

However, despite Nigeria's vast oil wealth, it has not been able to supply its people with enough oil, which in many cases has plunged people into chaos.

This can be attributed to the lack of refineries that the country does not have, so that only after it sells crude oil to other countries, does it return to them to buy refined crude oil.

That is why it buys oil at a high price, which is why the government pays the surplus oil so that citizens will not have to buy it too expensive.

The previous government of Goodluck Jonathan tried to withdraw oil subsidies, but there were protests.

Economists' perspective on withdrawing oil subsidies in 2016

Economists believe that withdrawing oil subsidies has its advantages and disadvantages. But many say the benefits are long-term.

Experts say that in the current economic climate, the government does not have the funds to pay for the surplus.

The huge amount of money spent can also be used to pay for other development projects that are very important.

There will be competition among big business to break the oil price, for fear that no one will be able to take advantage of them, as has happened in the case of telecommunications companies.

There is speculation that oil will be abundant everywhere and there will be no longer long queues at petrol stations.

Given the current economic situation and the hardships the people are facing, some feel that withdrawing oil subsidies will not benefit the community, especially the poor.

The cost of transportation and consumer goods will increase.

It will allow oil traders to set their own prices, making oil more expensive than government-mandated prices.