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201512_Nigerians fuel subsidy


In Nigeria, the continuous repetition of a set of beliefs in the public space is all it takes to accept them as true, even in the face of data clearly showing otherwise. Nothing typifies this truth more than the argument about the fuel subsidy being one of the ways that the most Nigerians benefit from the “national cake”.

This argument however falls Short when held up to scrutiny.

Based on figures from the NNPC website, accurate as of December 7, 2015, the subsidized price for petrol is N87, and the expected open market price (OMP), which is what we should be paying if there was no subsidy is N93.18, down from the November 26 OMP of N100.94. This is essentially a reflection of the fall of oil prices from from $42 per barrel to $38.
But, what are ordinary Nigerians paying?