Victor EzejaThe latest hike in price of Premium Motor Spirit (PMS) across the country has continued to draw reactions, as Nigerians grapple with the attendant spike in transport and general cost of living.
The Nigeria National Petroleum Company Limited retail outlets on Tuesday, 18 July 2023 increased its price of petrol from N540 to N617 per litre. Independent marketers consequently hiked their prices. While it is sold at N620 in some states it goes for as much as N650 per litre in others depending on the distance, due to haulage costs from the depot.
Join our WhatsApp ChannelREAD ALSO: Fuel Price Hike: Nigerians Struggle As Pump Prices Surpass N600 Per Litre
This is the second major increase since the removal of subsidies on petrol. Recall that President Bola Tinubu had during his inaugural address on May 29, announced that subsidy on petrol had ended, a development that led to the jump in the price of the product from N198 per litre to over N500 per litre on 30 May 2023.
Since the withdrawal of subsidies on petrol and the floating of the naira against the dollar, marketers had continued to explain that the cost of petrol could rise to as high as N700 per litre.
READ ALSO: Crude Oil Costs, Naira Depreciation Fueling PMS Price In Nigeria – Ex-PENGASSAN President
The NNPC GCEO, Kolo Yari, on Tuesday blamed the increase on market realities, adding that the price of petrol will continue to fluctuate.
The current market realities as explained by the former president of the Petroleum and Natural Gas Workers Union (PENGASSAN), Peter Esele, is that the prices of crude oil in the internal market has gone up recently while the value of naira dropped. Esele added that since Nigeria is depending on importation of petrol, it is expected that the price would also go up.
The Nigeria Labour Congress, (NLC) in a statement by its President, Joe Ajaero, said the new pump price of fuel is provocative and designed to worsen the poverty level and hardship Nigerians are currently facing.
Ajero accused the government of being insensitive to the plight of Nigerians hence the decision to inflict pains on them through “unilateral increase” of the pump price of fuel across the federation.
While expressing rejection of the new pump price regime, the NLC leader warned the government not take the people for granted.
“We strongly condemn this latest unilateral increase and warn the government to desist from trying the patience of Nigerians.
“What the government has done is capable of pushing Nigerian people to the edge of the precipice and can trigger a raging fire that may overwhelm whatsoever mechanisms the government thinks it has put in place as safeguards,” Ajero.
PDP: Fuel Should Not Sell above N150 per litre
The Peoples Democratic Party (PDP), joined their voices with other Nigerians in condemning the new price increase and demanded that fuel should not sell above N150 per litre in Nigeria.
In a statement signed by the PDP’s national Publicity Secretary, Debo Ologunagba, the party accused the All Progressives Congress-led government of endorsing a fuel price regime that is “extortionate”, adding that it is “a provocative exhibition of extreme insensitivity and callousness towards Nigerians.”
The Party warned that the increase is worsening the already suffocating economic situation under the government “and has the capability of triggering very serious crisis in the country if not abated.”
The party said that the manner in which the fuel subsidy removal was executed shows that it was not well thought out.
“It is appalling that instead of seeking ways to stabilize and grow the economy, the APC administration has abandoned the welfare of Nigerians which is the primary purpose of Government under Section 14 (2)(b) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and left the citizens to the vagaries of market forces and exploitative cabal; a disposition that is characteristic of a government that is not accountable to the people.
“The PDP is alarmed that with its ill-thought out, badly planned and hurriedly-executed polices, the APC is running Nigeria’s economy aground with the value of naira rapidly plummeting, businesses and production shutting down; citizens losing their means of livelihood, commercial and social activities crippled, with millions of families no longer able to afford their daily needs as the costs of food, medication and other essential goods and services continue to skyrocket,” the statement said.
It added that after facing harsh economic condition in the eight years of the Buhari-led APC administration, Nigerians expected to have a relief but are being pushed to the edge with the excruciating situation.
The statement further said the party rejects the argument by the government that the price of fuel is determined by market forces, and activities in the international market. It said that comparing the pricing system of fuel in Nigeria “with those of other countries which have functional infrastructure, such as variety of affordable alternative transportation system and sources of energy; strong currency and where citizens earn far higher than what obtains in Nigeria,” is unacceptable.
“Our Party insists that the N617 per liter of fuel is excessive, unacceptable and cannot be justified under any guise. This is especially given the economic potentials and prospects within our country.
“Even with the removal of subsidy on petroleum products, the PDP maintains that with a deft, transparent and innovative management of resources, economic potentials, national comparative advantage and expanded value chain in refining capacity, fuel should not sell for more than N150 per liter in Nigeria,” the statement added.
Group Seeks Reversal of Pump Price to N198/litre
Also, a group known as Coalition of South East Youth Leaders (COSEYL) rejected the petrol price hike, describing it as gross insensitivity to the plight of Nigerians.
In a statement jointly signed by its President General Goodluck Ibem, and Secretary, Comrade Okey Nwaoru, COSEYL, the group vowed to mobilise Nigerian youths to stage a peaceful protest against the development.
It called on the government to reverse the price to N198 per litre, adding that Nigerians are already battling with many challenges and do not need the government to compound it with unilateral increase of fuel price.
Other Stakeholders Kick
Prime Business Africa reports that 24 hours after the latest increase, many Nigerians have continued to kick against it with many taking to social media to express their frustration with the development.
Lagos-based lawyer and human rights activist, Chief Malcolm Omirhobo, who criticised the increase in pump price of petrol said the N8,000 subsidy removal palliative offered by the government has no effect in solving the problem of an individual given the current cost of things.
“8K can only get 12 litres of fuel at N617 per litre. A family of 6 spends on an average 3K daily for transport, not to talk of the high cost of food and other essential commodities. School fees and electricity bill not yet factored in O. I beg, 8K no palliative anything,” Omirhobo wrote on his Twitter handle on Wednesday.
Also, commenting on the development, Daniel Bwala, spokesperson of the presidential candidate of the PDP, Atiku Abubakar, said it is unacceptable that Nigerians should be subjected to buying fuel at a price driven by forces in the international oil market.
“We are forced to buy the fuel at international market price, but are our workers paid international minimum wage rate? Is our living conditions equal to international standards. The last time IBB implemented World Bank or IMF structural adjustment program, Nigeria went into work bank or IMF slave market,” Bwala tweeted.
The Social Democratic Party (SDP presidential candidate in the 2023 election, Adewole Adebayo said the government could have achieved a hitch-free subsidy removal if it had put necessary conditions in place such as having a functional public transportation system among other sustainable measures and not giving money as palliatives to selected citizens tagged as vulnerable.
Adebayo, who appeared on Arise News Morning Show on Wednesday, said the government needs to ensure that the citizens have access to basic needs such as food, affordable health, and education, not handing out a paltry sum to an insignificant number of the population as palliative.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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