…Jerks Up Petrol Price To N1030, N998/L In Abuja, Lagos
…Increase Ill-Timed, Nigerians Wallowing In Poverty — Yusuf
…NLC Asks FG To Reverse Pump Price Of PMS Immediately
…FG Taking Nigerians For Granted — Northern Youths
…Tinubu’s Inefficiency Cause Of Hike — Pearse, Akingbolu
…It Will Stoke Inflationary Pressures, Erode Consumer Purchasing Power
Outrage on Wednesday greeted the raising of petrol prices by the Nigerian National Petroleum Company Limited (NNPCL) across its retail outlets in the country.
In Lagos, NNPCL increased the price of Premium Motor Spirit (PMS), otherwise known as petrol, from N855 per litre to N998 per litre.
In Abuja, some petrol stations monitored by our correspondent sold PMS between N1030 and N1,100.
Reacting, Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), said that the latest increase in PMS price is regrettably ill-timed and does not reckon with the prevailing difficult economic conditions.
Yusuf in a statement made available to Daily Independent said that it is important to stress that social, economic and political considerations matter in policy choices.
“Commercial considerations should not completely override these considerations. There is always a place for political economy in the interest of the vulnerable segments of society”, he said.
Yusuf said that the Nigerian economy is not ripe for full blown deregulation and market principles on all fronts and that the social cost of such policy choices are typically very high.
“This is an economy with very weak social safety nets. Over one hundred million people are wallowing in various variants of poverty. There is also an issue of policy sequencing. The present administration has presented an Economic Stabilisation Bill to the National Assembly.
“The bill is expected to bring some relief to the citizens and businesses. It would have been better to allow the proposed mitigating measures to be activated and gain traction before coming up with the petrol price hike. What the economy needs at this time are measures to ease the current economic and social challenges, not policies that would aggravate them”, he noted.
Yusuf pointed out that it is desirable at this time to urgently cut import duties and taxes by a minimum of 25 percent on all industrial raw materials, passenger buses of 18 seater and above and cars of 2000cc engine capacity and below.
“The customs duty exchange rate should be fixed at a maximum of N1000/dollar to reduce the current prohibitive cost of imports. Relevant legislation should be amended to that effect. This is without prejudice to the fiscal policy measures contained in the Economic Stabilisation Plan.
“The government must be ready to trade off some revenue in the current situation. There is a need to seek to achieve the maximisation of welfare function for citizens and productivity function for businesses. The government should not be too fixated on revenue maximization”, Yusuf said.
NLC Asks FG To Reverse Pump Price Immediately
The leadership of the Nigeria Labour Congress (NLC), on Wednesday, lampooned the Federal Government over the fresh hike in price of petrol.
The labour movement specifically demanded immediate reversal of the fuel price, saying it is illogical that a private firm is the one determining the prices of the products.
The President of NLC, Joe Ajaero, wondered why the Federal Government continues to jerk up the price of petrol virtually every month even when the minimum wage was yet to be implemented.
He said, “We are dismayed by the latest increase in the pump price of petrol. It looks like the only thing this government is known for is increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.
“Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly.
“We challenge the government to go to the drawing board and present us with a blueprint for an inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.
“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities.”
FG Taking Nigerians For Granted — Northern Youths
The Northern Youth Council of Nigeria has decried the increase in pump price of fuel to N1,030 by the NNPCL, saying that the Federal Government is taking Nigerians for granted.
The group in a chat with the Daily Independent through its national president, Comrade Isah Abubakar, said that something would definitely happen because Nigerians would not just continue to endure the hardship.
He said, “We’re being taken for granted by the Federal Government. Time will come when Nigerians will resist and things will change for the better but obviously these leaders have been harsh on the people. We don’t know how it will happen but we’re optimistic that it will happen because we cannot continue on this trend.
“Our roads are not fixed. We don’t have a good transport system, our states are not connected by rail. We don’t have alternative means of transportation. Where on earth does the government want Nigerians to lay their heads?
“Three days ago when the rumour of this fuel pump price was making the rounds, already food prices have skyrocketed in the market. So it’s unfortunate because everyone is in pain. I spent over N60,000 to buy gasoline to transport to Abuja for a journey of less than eight hours. I don’t think that Nigerians can sustain this, the reason poverty has continued to deepen. Out of schoolchildren continue to increase, maternal mortality rate has continued to increase. Things that the government should do to make life better for Nigerians, they disregard.
“Unfortunately for us the opposition political parties are not vibrant. I don’t just know where we’re going. What we have now is not different from the military junta.
“We find ourselves in an unfortunate situation where people wake up and decide whatever they want to do. Majority of the people making these anti-people policies are not the ones fueling their vehicles, their vehicles are being fueled by the government. So in one way or the other it doesn’t affect them but one beautiful thing about life is that power is transient. Definitely, they’ll leave there and join us at the spectator table.”
Corruption, Inefficiency By FG Cause Of Hike— Pearse
On his part, Dr. Adetokunbo Pearse, Public Affairs Analyst, Convener Reset Lagos Peoples Democratic Party (PDP) and member PDP National Presidential Campaign Council in 2023, blamed the hike on corruption and inefficiency by the Federal Government.
He told Daily Independent that the increase in the pump price of petrol should not come as a surprise to anyone.
“The increase is as a result of the president’s failure to address the issues of corruption, inefficiency, theft and waste in the oil industry.
“The Nigerian economy is 90% dependent on crude oil sales because that is how we generate foreign revenue. For as long as the oil industry is weak, the Nigerian economy will be weak.
“The agony caused by the ever increasing cost of oil has crippled the Nigerian economy and is responsible for the growing rate of hunger and poverty.
“You’ll recall that this trend of ever increasing cost of petrol which has virtually crippled the economy began the day of Tinubu’s inauguration when he unilaterally announced the removal of fuel subsidy. From N185 per litre from his ascension to the presidency on 29th May 2023 to N600, to N800 a year later, and now to 1,000/ 1,200 per litre.
“The most disturbing aspect of this tragic situation is that President Tinubu and his family members benefit directly from the price increase. Under these circumstances, it is not likely that things will get better.
“The only solution to the economic problem, and all other problems associated with the bad governance of this administration is to remove this government from office. If the National Assembly fails to impeach this president, then all well-meaning Nigerians must vote him out of office in 2027,” he added.
Hike Shows Tinubu Lacks Strategy—Akingbolu
A Lagos-based lawyer, Mr. Kabir Akingbolu, in his contributions said that the hike in fuel prices is shocking to many Nigerians because no one believe things would be this difficult, and that a reasonable government would still increase the price of petroleum. “It is too sad,” he added.
“Now, with this, it is very clear that Tinubu has no idea of governance. He has no policy that can take Nigeria out of the trenches. Buhari put Nigeria on the sickbed, and Tinubu has suffocated it.”
Nigeria was said to be on autopilot during Buhari’s tenure, but it is now on super-autopilot because it seems as if there is nobody in charge. He is not talking to us, yet he reels out intimidating and bullish figures that have no impact on Nigerians.
“A dollar is now equivalent to almost two thousand naira. In a well-governed country, you would not see money being exchanged on the black market. You go to the bank, you enter a banking hall. Who is profiting from this? The Bureau de Change is making black-market dollar sales lucrative, and some people in high places – politicians, technocrats, and big men in society – are trading and making money through these backdoor means. Instead of blocking these loopholes, you are increasing fuel prices.
“Now, it means there is no end in sight. As soon as fuel prices increase like this, the cost of food rises, transportation costs go up, the price of building materials goes up, and the cost of farming equipment rises. In a country where one could previously afford a cup of garri, it’s no longer easy. A bag of rice is now being sold for over a hundred thousand naira and some for as high as 150,000. Yet, the only thing the president can do is increase the pump price. It’s a shame. I think he should not overstretch his luck because Nigerians have shown so much understanding. We are an understanding nation.
“The citizens are fantastic and incredibly persevering. We adjust easily to things, but I think the president is taking us for a ride. It’s an insult to our collective intelligence, our welfare, and our well-being.
“Unfortunately, he claims to be an economist. Look at where we are today. I think the president is bereft of any developmental agenda or idea.”
FG Must Focus On Tackling Causes Of Price Fluctuations — Nwanguma
The Executive Director of Rule of Law and Accountability Advocacy Centre (RULAAC), Mr. Okechukwu Nwanguma, noted that the recent fuel price increase in Nigeria is expected to have significant adverse effects on the economy, exacerbating inflation, raising the cost of living, and potentially leading to social unrest.
Instead of addressing the challenges faced by citizens, he said the government appears to be prioritising further fuel hikes without implementing effective economic policies or social safety nets for vulnerable populations.
He added that a proactive government should focus on tackling the root causes of fuel price fluctuations and invest in alternative energy sources.
He said such measures are essential to create more stable economic conditions and alleviate the burden on the public.
“Overall, it is crucial for the government to adopt a compassionate approach and engage in long-term planning to address energy and economic challenges effectively”, he said.
This latest hike marks the second significant price adjustment in recent time, further straining the country’s economic landscape.
Nigeria has struggled with fuel pricing and subsidies for decade with the country’s fuel pricing mechanism being marred by controversy, inefficiencies, and fluctuations in global oil markets.
President Bola Tinubu, had on Monday, May 29, 2023, during his inaugural address at Eagle Square, Abuja, shortly after he was sworn in as the 16th President of Nigeria, announced that his administration will remove the subsidy on petroleum products, proclaiming, “Subsidy is gone”.
However, the NNPC has continued to influence prices through its pricing template.
Analysts said, “The increase will stoke inflationary pressures and erode consumer purchasing power”.
By Chidi Ugwu; Seyi Taiwo @Independent
