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OIL & GASPOLITICS & GOVERNMENT

Lawmakers Struggling To Fix Oil Price Benchmark

Following the massive slump in oil prices, some members of the House of Representatives have suggested that the crude oil benchmark price for the 2015 budget be placed between $40 and $45.

However, they were hesitant to elaborate on the issue as they reasoned that this was a difficult time to make realistic projections on the price of crude.

President Goodluck Jonathan had proposed $65 per barrel as the oil benchmark for the N4.3tn budget proposals he sent to the National Assembly on December 17, 2014.

The $65 was a drop from the $78 the Federal Government initially proposed for the budget in the first ‘Medium Term Expenditure Framework’ it submitted to the National Assembly for 2015-2017.

Between the date of submission of the proposals and present day, global oil prices have further crashed to around $46, heightening tension in the country because of its near-total dependence on crude oil export for government revenue.

As a result of the slump in oil prices, attention has been shifted to the National Assembly, especially on the possible benchmark the lawmakers will base the budget on.

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BWN
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Comments (2)

  1. It’s difficult to fix at this time

  2. it’s a precarious situation, like a bar of soap, the tighter your grip, the less control you have.

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