Minister of State for Budget and National Planning, Mr Clem Agba says Federal government would maintain the bench mark rate of 60 dollars per barrel in spite the sudden increase in price of crude oil.
Agba said this while fielding questions from journalists at a media briefing for the 25th Nigerian Economic Summit in Abuja on Monday.
Oil prices rose as much as 20 per cent to above 71 dollar per barrel, the biggest percentage spike in almost three decade as markets reopened after an attack on Saudi Arabia’s oil infrastructure that cut more than half of the country’s production.
The minister said government would be monitoring the situation to decide the next line of action.
He said if the current rise in price of crude oil is sustained then there might be need for adjustment otherwise government had no such plan.
“Considering the recent event in Saudi Arabia, leading to soaring oil price, we will still maintain our bench mark rate in the 2020 budget proposal,” he said.
The Nigeria News Agency reports that the reported strike by 10 drones at Saudi Aramco’s Abqaiq and Khurais oil facilities have disrupted more than half of Saudi Arabia’s oil capacity or 5.7 million barrels per day (mbpd).
The US has blamed Iran for the attacks even as Yemen’s Houthi rebels claimed credit. Some oil traders have already begun to speculate if oil prices will cross the $100-mark yet again.