LAGOS — AS fuel scarcity woes worsened in the country, the Nigerian Bar Association, NBA, House of Representatives, the Peoples Democratic Party, PDP, New Nigeria Peoples Party, NNPP, and Coalition of Northern Groups, CNG, among others, yesterday, called on the Federal Government to reverse the hike in fuel price.
On Monday, fuel price was raised from N568 per litre to N897 sparking outrage in the polity.
This is as Vice President Kashim Shettima met with Minister of State, Petroluem, Heineken Lokpobiri, the Group Chief Executive Officer of the Nigerian National Petroluem Company Limited, NNPCL, Mele Kyari and the National Security Advisor, NSA, over the recent increase in petrol pump price and the scarcity of the product across the country. Also, the Minister said the FG was not fixing price of petrol.
Meanwhile, NNPCL, yesterday, said petrol prices were determined by free market forces.
This came as Nigeria Employers’ Consultative Association, NECA, yesterday, said the government has been economical with the truth with the citizens on the situation of the local refineries and the fuel prices and situation in the country.
Recall that the NNPCL on Tuesday increased the pump price of petrol from N568 to N855, N897, depending on the location per litre, amid lingering fuel scarcity in the country, though it issued a statement saying it was not responsible for the petrol price hike.
The new increased price came after NNPCL admitted that it owed its suppliers more than $6billion in debt.
FG not fixing petrol prices—MINISTER
Also at the meeting was the Executive Director of Nigeria Mainstream, Downstream Petroleum Regulatory Authority, NMDPRA, Kalu Okuoha.
Speaking to State House correspondents after the meeting with the Vice President, Lokpobiri said: “We were summoned by the Vice President, who was directed by Mr. President to summon the meeting and we have been with him to brief him about what is going on across the country. And what is important is for us to convey to Nigerians that the President is empathetic about what is going on in the country. He is concerned about the hardship faced by Nigerians, and that was why he directed the Vice President to call the meeting, for us to reflect on what is going on in the country.
“What is important is that products are available in the country, and we believe that between now and the weekend, there will be availability of products across the length and breadth of the country.
“The price could be high in some other areas, much more higher in some other locations, and in some locations, much more than you know other areas.
“But we believe that by the time there is availability of products across the country, the price itself will stabilize.
“But what is important is that government is not fixing prices. This sector is deregulated, and we believe that with availability of products, the price will find its level. This is important for Nigeria to know.
“The summary is that the President is empathetic about what’s going on. That’s why he directed this meeting. There is enough product in the country to meet the demands of Nigerians. There should be no panic buying. And we also believe that Nigerians need to know that government is not fixing prices. That is what I want to convey to Nigerians.”
Executive Director of NMDPRA, Kalu Okuoha, while briefing also said: “All regulatory efforts are now geared towards stabilizing supply, with a resultant impact that will be positive on the stability of price.
“To that objective, the regulator is ensuring that there’s increased operating hours from all loading depots. Vessels are being cleared promptly and extended hours where safety can permit for truck-outs as well.
“More importantly also is reinforcement of the support being given to local refiners because with increased production from them, we, indeed, like the minister, has said, there will be higher supply, which will stabilize the price. That’s the effort that the regulator is making.”
Petrol prices determined by free market forces —NNPCL
NNPCL yesterday, stated that foreign exchange (forex) illiquidity has been a significant factor influencing fluctuation in prices of petrol which were governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA).
Speaking on TVC News’ “Journalists’ Hangout” show, yesterday, Executive Vice President of Downstream, NNPC Ltd, Mr. Adedapo Segun explained that the current fuel scarcity is expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He said Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices are determined by unrestricted free market forces.
According to him, “the market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”
On commencement of lifting PMS from Dangote Refinery, Segun said that the NNPC Ltd is awaiting the September 15, timeline provided by the refinery.
Segun, who said no right-thinking individual will be comfortable with the current fuel scarcity, added that the NNPC Ltd has nearly a thousand filling stations nationwide and is collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”
Reps Committee on Petroleum Resources chair asks for reversal
Meanwhile, the Chairman of the House Committee on Petroleum Resources (Upstream), Alhassan Doguwa, has urged the Federal Government and NNPCL to revert to the old pump price of petrol due to the heightened hardship occasioned by he hike.
He described the price hike as “unacceptable” and called for urgent action to suspend the increase.
Doguwa in a statement, yesterday, said: “As a committee, we urge the Nigerian government and of course the NNPCL to consider the plight of Nigerians and suspend this recent increase in pump price.
“Nigerians are currently going through a lot today and adding to this burden is not in our collective best interest. Let us revert to the old pump price as soon as possible, and probably intensify engagements with major stakeholders to address the problem.”
Doguwa who doubles as the Chairman, Special Committee on Crude Oil Theft and Vandalisation of pipelines, also pledged the readiness of the committee to tackle the challenge caused by loss of revenue to the government owing to the loss of crude.
“As a special committee, we will aggressively seek modalities to interface with the youths and community leaders in the oil-producing areas to address the frequent cases of crude oil theft, which is one of the reasons capable of affecting petrol supply across the country.
“We are working in collaboration with security agencies in their quest to secure oil pipelines and other critical facilities in the country. We believe that a return to the old pump price will calm frayed nerves, thus enabling Nigerians to go about their daily activities with ease,” he noted.
He added: “We believe that with interventions the government is making to commence operations at Port Harcourt and Warri refineries, these challenges will come to an end.
“We may be suffering today but our tomorrow will be better. The government of the day is taking significant steps which may be painful today but very soon, we will beat our chest as proud Nigerians because the future is great. Tinubu means well for us and he is desirous of leaving a legacy that future generations will be proud of,” he stressed.
House Minority Caucus condemns petrol price hike
Reacting also, the Minority Caucus of the House of Representatives, condemned the recent NNPCL hike in the price of petrol.
The Minority Leader, Mr. Kingsley Chinda, in a statement said: “At a time when the nation is grappling with unprecedented economic challenges, including rising inflation, unemployment, and the depreciating value of the Naira, any further increase in the price of petrol will only exacerbate the suffering of the average Nigerian.
“The ripple effects of such an increase are far-reaching, impacting the cost of transportation, food, and other essential goods and services. This will ultimately erode the already fragile purchasing power of millions of our citizens, pushing more families into poverty.
“The Minority Caucus is deeply concerned that this decision by the NNPC appears to have been made without adequate consultation with relevant stakeholders, including the National Assembly, which represents the interests of the people.
“This unilateral action disregards the principles of transparency, accountability, and fairness, which should guide decisions affecting the lives of the citizenry. The current dire economic conditions, characterized by rising unemployment, soaring inflation, and widening inequality, have placed immense pressure on the livelihoods of citizens.
“These hardships have understandably triggered widespread protests, as people demand relief and accountability from those in power. The resulting unrest and chaos serve as stark reminders that economic instability can quickly escalate into broader social and political instability.
“While it is crucial for all stakeholders, including government, businesses, and civil society, to work collaboratively to address these economic challenges and restore stability, before the situation deteriorates further, Tinubu’s government should as a matter of urgency address the connection between dire economic conditions and social unrest rather than create conditions that exacerbate the already dire economic conditions.
“Not doing so merely provides filips to the army of youths who are jobless to return to occupy the streets and unleash violence on our country. This government must learn lessons from destructive effects of the national protests against bad governance, triggered by depressing and excruciating economic conditions.
“We, therefore, call on the Federal Government to urgently intervene and reverse this unwarranted increase in petrol prices. We also urge government to explore and implement more sustainable measures to stabilize the economy without placing additional burdens on the people.
“This includes prioritizing the rehabilitation and upgrading of our local refineries, curbing corruption in the petroleum sector, and ensuring that subsidies genuinely benefit the masses rather than a few privileged individuals.
“The Minority Caucus stands with the Nigerian people in rejecting this petrol price hike and will continue to advocate for policies that prioritize the welfare and well-being of all citizens. We urge government to listen to the voice of the people and take immediate steps to alleviate their suffering, rather than aggravate it.”
PDP rejects hike in fuel price
Similarly, the PDP rejected the new increase in the pump price of petrol to about N1,000 per litre in various parts of the country.
The party in a statement by its National Publicity Secretary, Debo Ologunagba, yesterday, described the hike in fuel price as thoughtless, especially at this time.
Ologunagba advised President Tinubu to save the country from further socio-economic challenges by immediately reversing the latest increase in fuel price.
He said that Nigerians could not bear fuel price increase worsening effect on suffocating economic hardship which they currently faced.
The publicity secretary said that the secretive administration of the petroleum sector, and persistent increase in fuel price without due regard to the well-being of the people has implications.
He described the action as anti-people and a show of unconcern to the agonies of millions of Nigerians, who could no longer afford their daily meals, medications and basic support for families due to the high cost of living.
Ologunagba said that today, said that majority of Nigerians live below the poverty line, businesses are collapsing daily as the Naira now exchanges for over N1,600 to a Dollar with over 34 per cent inflation rate.
He said that the statistics are expected to rise further with the latest increase in the price of fuel.
“Our Party restates that with a deft, transparent and innovative management of resources and national refining capacity, petrol should not sell more than N250 per litre in Nigeria,” he said.
NBA decries price hike, calls for reconsideration
On its own part, the NBA, in a statement, by its President, NBA, Mazi Afam Osigwe, SAN, said: “This significant and abrupt hike has imposed an unbearable burden on the already overstretched finances of ordinary Nigerians, further aggravating the economic challenges faced by millions across the country.
“The cascading effects of such a steep increase in fuel prices on the cost of living, transportation, and essential goods and services are deeply troubling. Many Nigerians are already grappling with inflation, unemployment, and other forms of hardship, and this additional financial strain is simply unsustainable. If allowed to persist, this price hike will only deepen the poverty and hardship experienced by the citizens.
“While the NBA acknowledges the necessity of economic reforms and recognizes the government’s responsibility to make difficult decisions, these decisions must be made with the utmost consideration for their impact on the welfare of the citizens. The NBA views this sudden price hike as not only harsh but also unjustified at this time.
“In light of this, the NBA calls on the Federal Government to immediately halt the implementation of this policy and engage in meaningful dialogue with all relevant stakeholders, including civil society organizations, labor unions, and economic experts, to explore more sustainable and less punitive alternatives.
“We urge the government to prioritise the welfare of its citizens, particularly the most vulnerable, and to pursue policies that alleviate rather than exacerbate the hardships faced by the Nigerian people.
“The NBA remains steadfast in its commitment to upholding the rule of law and will continue to advocate for the rights and well-being of all Nigerians. We stand ready to engage constructively with the government to find a more equitable solution that ensures economic stability while safeguarding the interests of all Nigerians.”
Fuel price hike, dragging Nigerians into poverty -NNPP
Also, National Working Committee, NWC of NNPP has taken a swipe at the APC led Federal Government over the recent fuel price increase.
According to the NNPP, the APC led government was manifesting “gross incompetence” and further dragging hapless Nigerians into deeper poverty.
In a statement yesterday in Abuja, the National Publicity Secretary of NNPP, Ladipo Johnson, slammed the APC over the sharp increase in the price of petrol now put at N1000 per litre.
NNPP NWC criticized the handling of the national economy which, it said, was manifesting “gross incompetence” by the APC government and further dragging hapless Nigerians into deeper poverty.
Johnson said: “From poor policy direction that has caused the people sleepless nights over high cost of living, we are now in double jeopardy on account of a sharp increase in price of petrol which will definitely lead to an increase in inflation and will drag the people of Nigeria into further poverty. This is nothing short of gross incompetence by a rudderless administration.”
Northern Coalition Groups Reject Hike
Also, the Northern Coalition of Northern Groups, CNG, yesterday, rejected a hike in fuel pump prices and expressed anger at the current pain added to the plight of Nigerians.
In a statement by its National Coordinator, Jamilu Charanchi, CNG said: “We reject the latest unjustifiable increase in fuel prices by the federation government across the country.
“Recall that the NNPCL has jerked up official pump price at its owned retail filling stations in all the 36 states plus the Federal Capital Territory, FCT, Abuja.
“Let it be reminded that an increase in fuel prices is tantamount to creating artificial raises in prices of goods and services in the country because of the centrality of fuel to the economy and the domino effects that naturally resonate such jerk up.
“It is imperative to remind President Tinubu that Nigerians did not vote for the Group Managing Director of the NNPCL or any other unelected official.
“The people elected him as President, and it is expected that he governs with compassion, empathy, and a deep understanding of the hardships faced by ordinary Nigerians.
“We have credible reports indicating that in some states, fuel prices have already surged to an outrageous ¦ 1,400 per liter. This is unacceptable and a direct assault on the economic wellbeing of the masses, who are already grappling with soaring inflation, unemployment, and pervasive insecurity.
“The CNG warns that this reckless policy will have serious consequences for the Tinubu administration, as the trust and patience of the Nigerian people are wearing thin.
“This price hike is devoid of any democratic consideration and reflects a disconnect between the government and the people.
“Democracy, ideally, is supposed to be, in practice, a government of the people, by the people, and for the people.
“However, this policy of constant-fuel-price-raise is clearly anti-people and anti-democratic that spells doom for the administration and the remnant of any goodwill.
“If the government truly believes in the principles of democracy, it must urgently reconsider this policy and take immediate steps to retract to avert further suffering of the masses.
“Undoubtedly, data from the government-owned National Bureau of Statistics and other authoritative organisations such as Food and Agriculture Organisation, World Bank and African Development Bank have confirmed that millions of Nigerians are deeply entangled in poverty and food insecurity which portend dire consequences for the country.
“Hence, this latest stretching of Nigerians credulity will most certainly accentuate further breeding of multidimensional poverty and hunger which would not augur well for the country and the administration.
“We reject this plan and urge the government to explore humane and innovative alternatives such as reducing wasteful expenditure and the high cost of governance, tackling corruption, and increasing taxes on luxury goods to fund the minimum wage. Any wage increase that hikes the fuel price is self-defeating.
“Therefore, we call on President Tinubu to listen to the voices of the people who elected him, to prioritize their welfare, and to demonstrate that his administration is one that cares for the common man.
“The CNG cautions that accountability, transparency, and evidence-based policies must not be jettisoned to be upheld as democratic values upon which our democracy should thrive better.”
Recall that the increase in petrol price has also attracted condemnation from the organised labour, with the Nigeria Labour Congress, NLC, and Trade Union Congress, TUC, calling for its reversal.
Condemning the move in a statement, NLC President, Joe Ajaero, accused the Federal Government of betraying labour movement.
TUC President, Festus Osifo, called on the Federal Government to “immediately rescind these decisions, promote policies that will strengthen the naira, and take decisive steps to alleviate the suffering of Nigerians.”
FG economical with truth on local refining, fuel price, subsidy– NECA
Meanwhile, addressing journalists in Lagos, President of NECA, the umbrella body for employers and the voice of business in Nigeria, Dr. Ifeanyi Okoye, said: “It (hike in fuel price) is really unfortunate.
“Nobody expected the fuel increase. I do not also blame the Nigeria Labour Country, NLC, for claiming that they were tricked into it (accepting the N70,000 new minimum wage) because we expected that with the new salary presented to labour, things will start getting better and better. Unfortunately, this has come up, and I don’t think it is good for the Nigerian workers and employers.
“Government has been tricking us into letting us know that Port Harcourt Refinery will soon start working. We have all taken that as already done. But today, we have not seen the Port Harcourt Refinery do anything. Our only hope, the Dangote Refinery, has been dancing front and back with government, which is also a problem.
“I think for Nigerian employers, and of course the labour themselves, it is not something palatable. I don’t think it is very much acceptable. They hope that something will be done by government about it.”
On price fixing, Okoye said: “I do not think government has made it clear that they will be dictating the price. We understand according to government, that deregularised price of oil made it free for all, they don’t have the right again to start talking about dictating the price for Nigerians. If there is need, or if they have any reason to start interfering again on the cost of fuel, that means fuel has not been deregulated.
“The way it is going, I don’t think that the fuel price is fully deregulated, according to what government originally said. They will believe that there are steps to get this fuel price stabilised, and maybe direct, monitor the dealers, especially as Dangote has just come up, you know, being able to monitor and ensure they don’t rape Nigerians.
“I will want to believe that that is what government is looking at. But for government to say they have not deregulated, I don’t think it is acceptable. It has been announced openly to the people, and the people have accepted it, but the way things are going, it looks like a joke.
“The best I would advise, or I think is acceptable, should be to remove the subsidy. Complete removal, and allow individuals to come and play in the field, just like the way Dangote has done. Government has a lot of other areas they need to subsidise. I mean, I was very excited when I got information about government subsidising electricity in government hospitals and schools. That is a type of subsidy.
“But the issue of subsidising fuel has been creating a lot of corruption, as we all know. The best thing would be to remove subsidy completely from fuel, and possibly subsidising other aspects of the economy, so that the subsidy would be very clear, and of course acceptable to the people.”
Further hike looms as NNPC says N897/litre not market reflective
Executive Vice President (EVP) Downstream of NNPCL, Segun, who appeared on ARISE NEWS, yesterday, explained that the most sustainable option for Nigeria was the unrestricted free market pricing of PMS.
Addressing the hike, the EVP said: “If you look in Section 205 of the PIA, that’s the Act that gave birth to NNPC Limited, it tells you that petroleum prices or fuel prices were based on unrestricted free market conditions. And so, when you have a situation where fuel prices remain the same, that’s what is unusual, you won’t see that in other climes, where you have prices fixed for a long period.
“It’s actually supposed to move in consonance with changes and market conditions. During the summer months, prices are high because it’s a driving season, in the winter months, prices come down and things like that. So, that’s what the PIA provides for, prices should move with the seasons.”
He acknowledged that while Nigeria was seeing petrol pump price hikes, other countries were getting reductions.
“You expect to see prices drop in those climes where petrol prices are market based, but the opposite is our situation, we’re not at our full market pricing of PMS yet, and that’s why the behaviour of PMS pricing in Nigeria cannot be compared to those markets where the prices are fully market based.
“And if you’re going to do a comparison, you want to check out the equivalent of those prices that you see in those climes, and compare them to the prices here. You’ll find out that they’re still way higher than the prices we’re offering when you bring them to common currency.”
He added, “It should be free market, unrestricted market-based conditions… What is sustainable is the unrestricted free market pricing of PMS. That way, competition takes over, and Nigerians will get the best.
“Everyone will compete for market share, and the quality of service will improve. That feeling of entitlement by marketers or companies in the business will go away because they will compete against each other to serve consumers better.”
He explained the reason for the continuous increase in petrol pump price even though information had shown that the government has accumulated about N7 trillion in debt from shortfall payments in order to subsidise petrol.
He said: “It’s a zero-sum game. If the government is paying for it and the prices go up, it means the government is paying less for it. So, it’s simply a zero sum game, there is no duplication.”
On the problem of scarcity in the country, he said: “We’re working with all of the marketers. You know we have almost a thousand stations around the country, but that’s not enough. We’re working with all of the marketers, engaging with them to ensure that fuel stations open early and close late, and make sure that there’s enough fuel in all of the stations.
“So, we are ensuring that deliveries are made to stations. We are doing our best to make sure that there are no diversions,” he said.
On the recent admission by the NNPC that it was facing financial constraints which had affected supply of petroleum into the country, he said: “I can assure you that we have a good relationship with our suppliers, and as we speak, we don’t have a problem with the supplies coming in. Yes, we do have a challenge with payments, and that’s largely due to the fact that some FX illiquidity, it’s obvious, and that really is the challenge. As much as we are able to, we are making payments to them.
“And talking about the debt, I wouldn’t want to go into that issue, but yes, there is a debt. There may have been a denial on the exact amount that was posted in the media, it wasn’t a correct amount, so maybe that was a denial. But yes, there is a debt, it’s not news to everyone, but we are doing all we can to make sure that we retain the confidence of our suppliers, and I can assure you that our suppliers have confidence in our ability to pay.
“NNPCL has never defaulted in making its payments, and that’s why our suppliers continue to back us up. The good thing also is that we have Dangote Refinery coming up in production as has been announced, and that would also provide a source of supply into the country.”