Demand for Nigerian Oil To Fall In 2012 - IEA
International Energy Agency, IEA, has predicted that demand for Nigerian oil could fall in 2012 due to the removal of fuel subsidy, while questioning the method adopted by the Federal Government in removing the subsidy after the move sparked mass civil unrest in most parts of the country.
President Goodluck Jonathan removed subsidy from Premium Motor Spirit, PMS, also known as petrol, on January 1, sparking protests and threat by workers to shut down oil production in the country.
In the early hours of Monday, January 16, President Goodluck Jonathan announced the reduction in price of petrol from N141 to N97 as bench mark price. He also promised to carry out a thorough investigation into the alleged corruption in the importation of petroleum product.
Total product demand in Nigeria averaged 280,000 barrels per day in 2011, down 10,000 b/d or 3.8 per cent on a yearly basis, IEA, the West’s energy watchdog, said in its monthly report. It is expected to remain flat in 2012. IEA said: “Nigeria is on the watch list for 2012, with oil product demand likely to fall, at least in the first quarter of 2012.
“Persistent industrial disputes, of the kind seen in January, could further reduce forecasts, not just for oil demand but also for economic growth in general.
“This suggests that, in hindsight, a more gradual process might have been advisable, nor do the measures seem to have been accompanied by much in the way of public consultation or targeted assistance for the poorest members of society.”
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