What happened the previous five times government reduced fuel price

The Federal Government of Nigeria is reportedly stepping up plans to reduce the price of fuel.

An official announcement is yet to come but there has been discussions in final stages led by Timipre Sylva the Minister of State for Petroleum Resources.

REDUCTION IN PRICE OF PREMIUM MOTOR SPIRIT (PMS)

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The drop in crude oil prices has lowered the expected open market price of imported petrol below the official pump price of N145 per litre. /1 pic.twitter.com/VDEhbFn8Ze

— Ministry of Petroleum Resources, Nigeria (@FMPRng) March 18, 2020

According to Sylva, he has met with the stakeholders in the oil sector that are relevant about reducing the price of fuel.

JUST IN:

PMS PRICE ADJUSTMENT

In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.

Thread… pic.twitter.com/fTKqSz9tin

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— NNPC Limited (@nnpclimited) March 18, 2020

The reason to reduce the price is down to a crash in crude oil prices in the international market.

A report by Tribune Online reveals the meeting to reduce the price of fuel from N145 to N130  is ongoing at the Presidential Villa, Abuja. between President Muhammadu Buhari and the Federal Executive Council (FEC).

5 Times fuel prices dropped

This is not the first time the price of petrol would drop as some previous administrations have done so in the past

• Abacha- Nov 22, 1993: N5 to N3.25k(price dropped) – Abacha, having just overthrown the interim government of Chief Ernest Shonekan, wanted to buy legitimacy and favour from Nigerians so he cut the price of fuel from N5 to N3.25k

• Abacha-Oct 4, 1994: N15 to N11(price dropped) – Winner of the June 12, 1993, elections Chief MKO Abiola had been arrested and was in detention by the military junta. There was massive unrest across the country and the federal government chose to cut fuel prices, which it had jerked up from N3.25 to N15, to N11.
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• Abubakar-Jan 6,1999: N25 to N20(price dropped) –  One of the last actions of the Sani Abacha regime was to increase fuel price to N25 though it set up the Petroleum Trust Fund to utilize money from excess crude oil for infrastructure. When the General Abdusalam regime came inboard, it cut the price from N25 to N20 per litre.

• Obasanjo-June 8, 2000: N30 to N22(price drops) – General Olusegun Obasanjo was sworn in as civilian president of Nigeria in May 1999 and barely six months later he had jerked up the price of fuel to N30 from the N20 that his predecessor left it. However, by the first year anniversary of his administration, he reduced the price to N22.

• Yar’ Adua-June, 2007: back to N65(price drops) –  Obasanjo’s parting shot to Nigerians was another price increment to N70 at the end of his tenure. On assumption of office, his successor Umar Musa Yar Adua pegged the price back to N65 naira

• Jonathan (New year present)-Jan 1,2012: N141 GEJ(Labour strike forced him)-Jan 17, 2012: N97 -Yar Adua’s successor Goodluck Jonathan gave Nigerians a rude new year shock when his government announced a price increment from N87 to N144. However, in the face of massive civil unrest, he backed down and cut the price to N97 naira.