Nigerians’ common New Year resolution: Reduction in fuel price
Happy New Year rent the air, it echoed. Family, friends celebrating, hugging each other. Children, adults throwing knock out popularly known as Banga, as fireworks also display beautiful colours and effects. Churches celebrated with a cross-over service to usher in the new year. Thanking God for seeing a brand new year.
The dawn of a new year! A time for reflection, renewal, and fresh beginnings. With the new year comes new hopes and aspirations. One of the common things that comes with the new year, is the new year resolution. New year resolution is a person’s resolve to continue good practices, change an undesired trait or behavior, accomplish a personal goal, or otherwise improve their behaviour at the beginning of a calendar year. I asked a colleague what his new year resolution was and his response was “new year resolution? I stopped making resolutions over 10 years ago. 12 months is too long to access my my achievements. I take it each day at a time. At the end of each day, I take stock of my activities and achievements for the day. I believe in season, when tour season comes, nothing can stop it.” Other colleagues I asked were also not interested in new year resolutions. “No be who eat belleful go make new year resolution?” Asked another colleague. Quite a number laughed and agreed with him. While others in their closet, subconsciously wish for a better year.
It’s a new year, and Nigerians no doubt have a common new year resolution. Reduction in the pump price of fuel to a reasonable amount. The amount that will drastically reduce cost of foodstuffs and transportation. A reduction that will reflect in all aspects of life. A reduction where the hope of a better tomorrow will be today.
Nigerians are eagerly hoping for a reduction in fuel prices as the new year begins. According to industry experts, there’s a possibility that fuel prices might drop to as low as N500 per liter in 2025. This predicted drop is attributed to the deregulation policy of the federal government, which is expected to promote a healthy price competition among players in the downstream sector.
Some of the factors that might contribute to this price drop is stable foreign exchange policy which will help reduce the cost of importing fuel, with more players in the market, price competition is expected to increase, driving prices down, the naira-for-crude policy is also expected to contribute to the price drop, increased local refining like the coming on stream of the Port Harcourt, Warri, and Dangote refineries is expected to increase local refining capacity, reducing reliance on imported fuel. New agreements among the Nigerian National Petroleum Company Limited, Dangote Refinery and independent oil marketers may end long-standing issues over fuel imports. NNPC and oil marketers will now take petrol directly from local refiner Dangote, instead of importing it, aiming to reduce import costs, stabilise petrol prices and make fuel more affordable for consumers. It is shocking to know that the Nigerian NPCL and other marketers imported more than two billion litres of Premium Motor Spirit (petrol), within 42 days from October 1 to November 11, 2024. I don’t want to know how much that will amount to.
Strong indications emerged last weekend that prices of Premium Motor Spirit (PMS), popularly called petrol, may crash further in 2025. Industry experts, who spoke to Saturday Sun, noted that petrol, which currently sells for between N900 and N950 in many fuel stations, may have its price further crashing to as low as N500 a litre in the course of the year. According to oil stakeholders, the likely drop in prices of petrol in 2025 is premised on a strong downstream sector propelled by the deregulation policy of the federal government. The Federal Executive Council (FEC) had in July, 2024 approved the sale of crude to local refineries for payment in naira.
Prior to the commencement of operations of Warri refinery, the 60,000 barrels per day old Port Harcourt Refinery, which commenced operations over a month ago, is injecting about 1.4 million litres of petrol via blending with straight-run gasoline, 1.5 million litres of diesel and 2.1 million litres of LPFO. According to the Group Chief Executive Officer (GCEO), NNPC Ltd, Mr Mele Kyari, the 150,000 Port Harcourt Refinery 2 is currently undergoing rehabilitation and is at 90 per cent completion stage, ditto for the Kaduna Refinery which is also undergoing rehabilitation. But a presidency source told Saturday Sun that the Kaduna Refinery may not come on stream anytime soon due to the huge cost implication and other technical reasons.
While some of us are optimistic, some people are skeptical about the possibility of fuel prices dropping to N500 per liter. Would you blame them? I won’t. This is because price increase in Nigeria never goes up and come down to its old price. The best you have, it’s fluctuations. This is only common with seasonal food items.
As Nigerians welcome the new year, many are filled with hope and optimism for a brighter future. For some, 2025 represents a chance for a fresh start, particularly in the political landscape. Nationally, Speaker Abbas Tajudeen has urged Nigerians to renew their hopes for the year 2025, emphasising the need for collective optimism and resilience. Many Nigerians hope for improvements in various sectors, including: Economic Growth. A more stable economy, with increased job opportunities and improved living standards, good governance with effective leadership, transparency, and accountability in government, infrastructure development which includes improved roads, healthcare facilities, education, and other essential infrastructure. Nigerians hope for security, safer and more secure environment, with reduced crime and insurgency, access to quality and affordable healthcare services amongst others.
What are your hopes and aspirations for the New Year?
