The recent upward review of the pump price of premium motor spirit popularly called petrol from N123.50 to N143.80 has provoked the anger of the Nigeria Labour Congress (NLC) and the Peoples Democratic Party (PDP).
The price of the product was fixed at N125 per litre in March and reviewed downwards to N123.50 in April.
But the Petroleum Products Pricing and Regulatory Agency (PPPRA) had in a circular issued on Wednesday, July 1 to the marketers informed them to sell the product between N140 and N143.80.
“Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations, based on the existing price regime.
“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020,” said the PPPRA.
Shortly after the announcement, petrol station run by independent and major marketers swiftly reversed to N143.80 price per litre.
Reacting to the price increase, the NLC said in a statement by its national president, Mr. Ayuba Wabba said the development “might just be the last straw that would break the camel’s back.”
He also condemned the executive secretary of the PPPRA, Mr. Saidu Abdulkadir for the fuel price hike saying he did not even feign pretence that government has abdicated its responsibility to protect Nigerians from the cut-throat tendencies of neo-liberal market forces.
“Nigerians would recall that the last downward review in the price of petrol was at the beginning of the COVID-19 lockdown. The economic benefits of the so-called “downward” review were hardly enjoyed by ordinary Nigerians who were mostly indoors.
“Just as the lockdown is being eased out and as soon as the interstate travel ban was lifted, the government decided to hike the petrol price. Nigerian people and workers are forced to interpret this move as grand mischief and deceit.
“It is clear even to the blind that the crisis in our downstream petroleum sub-sector is ‘self’ nay government-inflicted.”
Wabba further stated that “the market-based fuel pricing policy would free the market of all encumbrances to investment and growth and encourage oil marketers to resume supply of petrol, create downstream oil industry value, foster job creation and ensure reasonable returns to investors.”
He added: “When the statement by the PPPRA is juxtaposed with the recent killer electricity charges unveiled by the DISCOs (electricity distribution companies), Nigerians cannot help, but feel the heat of a potent threat to run millions of Nigerians under.
“It is even worse that this is coming at a time when our people are living on the precipice of the COVID-19 pandemic.”
The NLC president attributed the crisis in the downstream sector to the refusal by successive governments to fix the nation’s oil refineries.
“Government simply wants to transfer the cost of its own inefficiencies to the Nigerian people. Nigerian workers say ‘No’ to such. There is no way Nigerians would accept a situation where we are charged international rates for a product which Nigeria is the sixth-largest producer in the world.
“The extra costs that the PPPRA wants Nigerians to pay in order to promote ‘growth’ and ‘investment’ are actually the cost of profits made by countries that we ship our crude oil to, the cost of sea freight of the refined products, the cost of demurrage at our seaports when the refined products arrive, the cost of the frequent devaluation of our national currency, and the cost of official corruption by gatekeepers managing the downstream petroleum sub-sector,” said Wabba.
The NLC demanded a reversal of the pump price to the old one saying the price of crude oil in the international market had only slightly increased from the previous price before the downward review was announced two months ago.
While renewing its call for ‘national conversation’ on the management of the country’s oil assets, the NLC insisted such must be in line with the provisions the constitution
Besides, the NLC called for the immediate rehabilitation of the country’s four oil refineries.
For its part, the PDP in a statement by its spokesman, Mr. Kola Ologbondiyan described the hike, despite the decline in the price of crude oil in the international market, as grossly unjustifiable.
It said the development further exposed the insincerity of the APC administration.
“Our party challenges the APC-led Federal Government to present to Nigerians, the indices and parameters it used to determine the price increase, which obviously cannot be in tandem with the prevalent situation in the global industry.
“The actions of the APC administration have continued to confirm that the party has never been pro-poor but only relishes in imposing hardship and heavy taxes on already impoverished Nigerians, while running an over-bloated government through which resources meant for the welfare of Nigerians are frittered by corrupt officials and the cabal in the Presidency.
“Under the APC, Nigerians have been subjected to untold hardship, which is worsened by excruciating taxes, including a 7.5 percent Value Added Tax (VAT) on essential commodities and services, increased electricity tariff, obnoxious Stamp Duty and other levies on bank transactions.
“It is shocking that the APC government has continued to impose more burdens that have made life unbearable to our citizens, many of whom have lost their means of livelihood due to the misrule of the APC.
“Only yesterday, President Buhari told the world that the number of poor people will triple following the adverse impact of COVID-19 pandemic; yet his administration, which has turned our nation into the poverty capital of the world, instead of seeking ways to stimulate the economy, is worsening the situation with an increase in fuel price.
“What Nigerians expect of the Buhari Presidency at this critical time is to save resources by immediately cutting the size of its over-bloated government, recover the over N14 trillion oil money stolen under its watch and channel the funds towards the wellbeing of Nigerians.
“Our party therefore charges the APC and its administration to immediately reverse the pump price of fuel to a price not exceeding N90 per liter, given the prevailing templates in the price of crude oil in the international market,” said the PDP.
