Why is one of Nigeria’s oil producing states paying the most for Fuel?

The National Bureau of Statistics, yesterday, released a report representing the average monthly prices paid by household on fuel across Nigeria in July. It revealed that Bayelsa state, which is one of Nigeria’s oil producing states, pay the most for Premium Motor Spirit (PMS); it was sold for an average of N153 per litre, as against the stipulated pump price of N87.

The other major oil producing states in Nigeria – Delta, Akwa Ibom, Rivers and Cross-rivers, pay as high as N100, N107, N113 and N118 respectively while Edo state sells at N95. Other states where petrol are sold expensively includes Taraba, Yobe, Kogi, Enugu and Benue state whose prices ranges between N115 – N130. Shockingly, it was sold the lowest at N92 per litre in densely populated Lagos and Kano states.

PMS

Bayelsa, which pays the most for fuel, is the state where oil was first discovered in commercial quantity. It has several oil producing communities such as Nembe Kingdom, which produces over 150,000 barrels of crude oil per day.

NBS_PMS_WATCH_ july_2015-page-002

The bone of contention here is why are the Bayelsans paying the most for fuel when it turns out at least 150,000 barrels of crude oil per day.

The Nigerian government have been hyping on the N5billion fuel subsidy for years and there had been debates on whether it should be removed or not, but in recent times, Nigerians have been forced to pay above the usual pump price,so who are the people benefiting from the oil subsidy? Would it really make a difference if the subsidy is removed or not?

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