Last week, all four of the big supermarkets in United Kingdom cut fuel pump price. Asda, Morrisons and Sainsbury’s reduced the price of their petrol and diesel by 2p a litre, while Tesco’s similar 2p cut took effect a week earlier.
Asda customers pay no more than 105.7p a litre for petrol, with diesel being 112.7p a litre. It was 14th fuel cut since the end of September, with 21p a litre coming off its petrol price in total and 17p a litre off its diesel.
For Morrisons and Sainsbury’s it is the seventh cut since the beginning of December. And it is predicted that petrol could dip as low as £1 per litre.
Nigeria vs elsewhere
Hard times are here in Nigeria, and Nigerians have to engage in money fight to save for other essentials. Hard times imply that the money we earn is of less value now than before.
With crude oil price crashing by over 40 per cent on the international market since June last year, global energy price has dropped several times over.
In the United States, consumers save an average of $50 on fuel per month. Motorists and other customers save about 40 per cent of spending on energy. Savings on energy are higher are higher in Europe.
Fuel price has remained the same in Nigeria. In some places, it was higher during the yuletide, and the tariff for electricity has just been raised with a caveat that residential buildings will charge more in June.
This increase in energy tariff goes against global trend even as power supply has plummeted. At about $50 per barrel price of Brent Crude ought to ensure a commensurate fall in pump price.
If oil importers and marketers still enjoy subsidy, the government has to compel significant drop in fuel price. But Abuja plans to withdraw whatever remains of subsidy after the elections in February.
Electricity sabotage rears up
Between December 23 and the new year, there was significant improvement in the supply of electricity across Lagos State. Residents in different areas sampled by TheNiche testified that they had supply all day long during the Christmas and in the first three days of the new year.
The sample spans Ikorodu, Akowonjo, Shomolu-Bariga, Iju Waterworks, Olodi Apapa, Ojo, Okokomaiko, and Iba.
Improvement in power supply came on the heels of the announcement of increase in tariff.
The Central Bank of Nigeria (CBN) signed fresh agreement with the Deposit Money Banks (DMBs) on December 22 to boost power supply.
CBN Governor, Godwin Emefiele, said the agreement was necessary because the banks were the channels through which the credit facility would be disbursed to the electricity generation (Gencos) and distribution companies (Discos).
Emefiele stressed that it was a bold step in the banking sector to support government’s commitment to stability in the critical sector.
By December 23, electricity supply peaked all over Lagos, leaving residents wondering how the sudden improvement came about. Then it relapsed again.
Who said there was no sabotage by operators to arm-twist government into agreeing to the increase in electricity tariff?
Billing fraud remains
Electricity billing fraud remains a hole in the pockets of consumers, some of whom live on the monthly national minimum wage of N18,000.
On customer, Shittu Adeniyi, petitioned against the Eko Electricity Distribution Company (EKEDC). He detailed how his functional meter was labelled ‘integrity doubtful’ by officials of Iba Business Unit, Ojo, who coerced him to pay N70,644 to purchase prepaid meters.
Fight for price cut inevitable
There is compelling need to fight for price cut in electricity tariff, fuel and diesel pump price to conform to the price crash on the global market. As we have seen in the Asda, Morrisons, Sainsbury’s and Tesco’s price cuts, there should be a commensurate drop in energy price in Nigeria.
Complacency costs cash. Good living is not given, it is fought for and won.