· FG, Labour meet again
By our correspondents
Residents of the Federal Capital Territory are learning to cope with the new reality of over a 200 percent hike in fuel prices and its attendant impact on prices of commodity.
President Bola Tinubu had in his inaugural speech declared that there would no longer be a petroleum subsidy regime, as the current 2023 budget does not contain it.
Barely 48 hours after the announcement, the Nigerian National Petroleum Company Limited, NNPCL, adjusted the pump price of premium motor spirit across its retail outlets, moving the price from N194 per litre to N537 per litre.
The Chief Corporate Communications Officer of NNPC Ltd, Garba Deen Muhammad, assured that prices would continue to fluctuate to reflect market dynamics.
“The NNPC Ltd. wishes to inform our esteemed customers that we have adjusted our pump price of PMS across our retail outlets, in line with the current market realities.
“We assure you that NNPC Ltd. is committed to ensuring ceaseless supply of products.
“The company sincerely regrets any inconvenience this development might have caused,” Muhammad said.
The Nigerian government has, for decades, subsidised fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the nation.
The removal of subsidy on petroleum has since impacted on cost of transportation. For instance, the cost of transportation has tripled, with intercity transportation moving from N200 to N300 and even N400 in some cases.
Passengers from Kubwa now have to pay between N500 to N600 to Wuse as against N200 to N300 formally charged, while those to distances like Bwari, Kuje and Zuba pay as much as N800 or even N1000 in some instances.
The new price regime has left untold hardship on citizens, including residents of the FCT who have devised several means of navigating through the new subsidy regime.
Some of the residents, who spoke with our correspondent, say they are forced to reduce the number of days they go to office to three times a week to enable them meet up with other responsibilities.
A civil servant, who simply gave his name as Elisha, said his colleagues have agreed to operate some form of roaster where they rotate days to be at the office.
“Unfortunately, that is the situation we find ourselves in and we must adjust. In my unit, we have agreed on days each person should be at the office. That way we don’t end up spending all our earnings on transportation alone. The situation is difficult but we must fine our way around it,” he said.
Our correspondent also observed that more people are now forced to walk short distances that they, before now access with taxis.
It is no longer unusual to find people trekking from the Federal Secretariat to FCTA Junction, or between Beggar roundabout to Wuse Market as taxis now charge N200 for these distances that used to go for N100.
Similarly, the use of generators as alternative sources of energy is fast becoming a luxury as generator sounds are no longer heard in most neighbourhoods.
Mrs. Auta James, said she has not powered her generators since the announcement of subsidy removal.
“Putting on generators is now a luxury for most of us, in fact, I don’t even remember I have a generator because I can’t afford to fuel it again. I have left the little fuel in the generator for emergency in case I need to on my freezer if the seize power supply for days.
While Nigerians gnash under the weight of the new price regime, the NNPC Ltd, however insist that “delaying subsidy removal till the end of June 2023 could have caused serious nationwide fuel scarcity and hardship.”
The company, in a series of posts on its Facebook page explaining its position on subsidy removal and petroleum price hike, on Saturday, said “NNPC Ltd was owed over N2.8 trillion and can no longer sustain sufficient supply to the market.”
According to the company, old stock was sold at the new price because “fuel stations cannot restock if they sell at old price and nationwide scarcity will manifest if they do.”
It noted that following the full deregulation of the downstream sector, NNPC Ltd. will no longer be the sole supplier of petrol, adding that by law, no player can control more than 30 per cent of the market.
The company did not however explain the legal instrument it relied upon to become the sole supplier of petrol before now.
On the current prices of fuel, it stated that NNPC Ltd. does not fix petrol price for the industry.
“Like other companies, NNPC Ltd. determines its petrol price as the market dictates. Industry Regulators & Consumer Protection Council will provide control,” it said.
As to whether petrol prices will continue to rise, the company said prices will be determined by market forces and they could also go down.
On petrol supply to domestic market, it said Dangote, NNPC & other domestic refineries will ensure petrol availability, improve Nigeria’s foreign exchange reserve, create employment and increase the nation’s Gross Domestic Product, GDP.
The NLC, however, expressed worry over the decision of government to announce new pricing template through NNPC, despite move by relevant stakeholders to manage the issue of subsidy removal, as pronounced by President Tinubu.
NLC in a statement said the action could scuttle discussion by stakeholders and parties in the oil and gas sector on the issue of subsidy removal by the president.
The statement signed by NLC president, Joe Ajaero, said they were worried that the NNPCL went ahead to announce a new pricing template despite the discussion with stakeholders in the oil and gas sector to manage the announcement by the President to withdraw subsidy on petroleum products.
“This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector. Government cannot in one breathe be talking about deregulation and at the same time fixing the prices of Petroleum products.
“This negates the spirit of allowing the operation of the free market unless the government has as usual usurped, captured or become Market forces.
“It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement. What the government has done is like holding a gun to the head of Nigerian people and bring undue pressure on the leaders thus undermine the dialogue.
“We call on the federal government to immediately instruct the NNPC to withdraw this vexatious Pricing template to allow free flow of discussions by the parties.”
The Trade Union Congress of Nigeria, TUC, also tackled the president on his inauguration policy statement on subsidy removal, insisting that the president cannot unilaterally remove fuel subsidy.
The union, in a statement signed by the Congress’ National President and Secretary General, Comrade Festus Osifo and Nuhu Toro, expressed its displeasure over the decision, insisting that the withdrawal of subsidy on petroleum products means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices.
The labour centre further expressed its disappointment that the president went on to announce end to fuel subsidy contrary to his pledge to always consult and dialogue with stakeholders on such issues important as fuel subsidy removal.
“We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people, hence ought to have been treated with utmost caution, and should have been preceded by robust dialogue and consultation with the representatives of the working people, including professionals, market people, students and the poor masses.
“Accordingly, we hereby demand that President Tinubu should tarry awhile to give room for robust dialogue and consultation and stakeholders engagement, just as he opined in his speech until all issues and questions – and there are a host of them! – to ensure that they are amicably considered and resolved. Nigerian Workers and indeed masses must not be made to suffer the inefficiency of successive governments.”
