Nigerians groan as NNPCL hikes fuel pump price to N855 per litre

AKOR SYLVESTER, Abuja, IBRAHIM QUADRI

 

Two days after it cried out that the burden of petrol price has pushed it into over $6 billion debt, the Nigerian National Petroleum Corporation, Limited, NNPCL, on Tuesday morning, increased its pump price of fuel to N855 per litre from N617 per litre.

 

This is an increase of over 45 percent. Checks at NNPC retail stations in Lagos and Abuja reflected the new fuel price.

 

This unexpected price hike shocked many Nigerians, prompting them to flock to nearby NNPC retail outlets to refuel.

Other major marketers quickly adjusted their pump prices to reflect the new rate..

.Tinubu has betrayed us, says NLC, demands immediate reversal of increase

 

However,the Nigeria Labour Congress (NLC) has expressed disappointment over the recent increase in the price of petroleum product to N855 per litre, saying President Bola Tinubu’s government has betrayed the Congress and the Nigerian people.

 

It said one of the conditions for the Congress to accept N70,000 minimum wage was that the fuel price would not be increased,  stating that the government has taken Nigerians for granted with its latest anti people’s policies.

 

The Congress in a statement signed by its president, Joe Ajaero, called on the President to immediately reverse the hike in the pump price or face the action of Nigerian workers.

 

It said it will call for the meeting of its appropriate organs to take decision on the sudden increase of fuel price and other decisions of government.

 

The statement reads: “We  are filled with a deep sense of betrayal as the federal government clandestinely increases the pump price of pms. One of the reasons for accepting N70,000 as national minimum wage was the understanding that the pump price of pms would not be increased even as we knew that N70,000 was not sufficient.

 

“We recall vividly when Mr President  gave us  the devil’s alternatives to choose from: either N250,000 as minimum wage  (subject to the rise of the pump price between N1,500 and N2,000) and N70,000 (at old pms rates), we opted for the latter because we could not bring ourselves to accept further punishment on Nigerians.

 

“But here we are, barely one month after and with  government yet to commence payment of the new national minimum wage, confronted by a reality  we cannot explain.

 

“It is both traumatic and nightmarish.Yet, when we told government that it’s approach to resolving the fuel subsidy contradictions was patently faulty and would not last, it’s front row cheer leaders sneered at us, saying we did not understand basic economics .

 

“But if truth be told, this act of betrayal is consistent with  the character of this government. We recall the assurances we were given by the leadership of the National Assembly on the 250% tariff hike, that it had been dealt with and there was no need  to openly engage the Minister of Power who was at that meeting.

 

“Instead of the promised reversal, the rate has since been jerked up further putting more Nigerians and businesses in jeopardy.

 

“The combined effects of government’s ferocious right -wing market policies  brought Nigerians and Nigeria to their all-time low and led to the End-Hunger/End Bad Governance protests.

 

“Rather than make amends, government arrested and hounded into detention some of those who took part and some of those who had nothing to do with these protests, charging them with criminal conspiracy, subversion, treasonable felony, terrorism financing and cyber crime with an intent to overthrow the government of President Tinubu.

 

“The police and other security agencies have since  been on rampage terrorising the citizenry in pursuance of government’s agenda of muzzling lawful dissent.

 

“In brazen pursuit, they have defamed and libelled not a few individuals.

 

“They have gone as far as appropriating the statutory  roles of the Ministry of Labour and Employment in resolving trade dispute matters and issues considered outside the jurisdiction of the security agencies.

 

“That the government is on rampage in the face of stifling conditions of living is an understatement but we promise Nigerians that we at the Nigeria Labour Congress  will not be cowed into submission.  Together with civil society, we brought about this democracy when some of the actors in power today  were conspiring with the military on how to perpetuate their hold on political power.

 

“When the State and the security forces picked on us in a hybrid war, we had our suspicions. We knew they were up to something sinister and needed to distract/divert our attention or possibly frighten  or weaken us before they came  out with it so that we would not have a robust response.

 

“Now that the chickens have come out to roost, we were right in our  suspicions. However,  we want to let Nigerians know that the clandestine/surreptitious increase in the pump price of pms  is the first among the equally sinister policies government has up its sleeve.

 

“On our part, we stand resolute with the people and will neither be distracted nor intimidated by the government or its security  agencies.

 

“We insist that government cannot criminalise protests or basic rights in the domain of the citizenry.

 

“Accordingly, we demand the immediate: Reversal of the latest increase in the pump of pms across the country; Release of all those incarcerated or being prosecuted on the assumption of having participated in the recent protest, halt the indiscriminate arrest and detention  of citizens on trumped up charges; reversal of the 250% tariff hike in electricity; stop to the hijack of the duties of the Ministry of Labour and Employment; end to policies that engender hunger and insecurity; halt to government’s  culture of terror, fear and lying.

 

“We are guided by our belief in our country and the need to secure and sustain its sovereignty, integrity and welfare of the people.

 

“In the  coming days, the appropriate organs  of the  Congress will be meeting to take appropriate decisions which will be made public”.

.FG making Nigerians pay for NNPCL’s crass inefficiency – NECA

 

Meanwhile, The Nigeria Employers Consultative Association (NECA) says the new hike in pump price of Premium Motor Spirit (PMS),  also  known as petrol,  is worrisome and unfair.

 

Mr Adewale-Smatt Oyerinde, the Director-General of NECA, said this in a statement while reacting to the new hike in pump price of PMS on Tuesday in Abuja.

 

The Nigerian National Petroleum Company Ltd. (NNPCL) had said that with effect from September 3, the new pump price of PMS would be N897 per litre.

 

According to Oyerinde, the new pump price of petrol is not only worrisome but also unfair.

 

“We had expected that the government will leverage on the momentum created by the completion of the Dangote refinery and the planned commencement of operation of the Port-Harcourt refinery.

“This is in order to clear the obvious self-inflicted pain on Nigerians and progressively reduce the pump price of petrol. This seems not to be the case.

 

“This new pump price could be seen as making Nigerians to pay for the crass inefficiency in the NNPCL,”he said.

 

 

He said that rather than address the fundamentals that have made Nigeria a net importer of petrol, even when we have four refineries, government has continued to inflict pain on Nigerians.

 

 

According to him,  the government is,  inadvertently, contributing to the increase in cost of doing business.

 

“We advise that government should have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses,”he said.

.Dangote Refinery ‘ll boost economy, eliminate scarcity, conserve forex, says Gov. Abiodun

 

In a related development, the Ogun State Governor, Prince Dapo Abiodun, said the commencement of fuel production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.

 

Petrol produced from the 650,000 barrels per day Dangote refinery is expected to hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited have been formalized.

 

Prince Abiodun, in a statement on Tuesday signed by his Chief Press Secretary, Lekan Adeniran, said that with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation—will be solved.

 

According to the statement, with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians will heave a sigh of relief from constant fuel shortages, while the economy will also receive a boost.

 

Prince Abiodun praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.

 

The governor also commended President Bola Ahmed Tinubu for his intervention in ensuring that the refinery comes on stream during his administration.

 

He praised the President’s commitment to the revitalization of other refineries in the country, which, he said, will drastically reduce fuel prices when all of them start production.

 

He said: “This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent. The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.

 

“The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel. This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.

 

“By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy. This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.

 

“Moreover, the economic impact of the refinery extends beyond just fuel production. It is expected to generate thousands of jobs, both directly and indirectly, thus contributing to the reduction of unemployment rates. The ripple effect of this employment generation will invigorate local economies, stimulate growth in ancillary industries, and enhance the livelihoods of countless families across Nigeria.

 

“In addition to bolstering local employment and economic activity, the refinery’s operations are expected to enhance energy security in Nigeria. With the capacity to produce a substantial volume of petrol, the country will be better equipped to meet its energy needs, reducing the volatility associated with fuel shortages and price fluctuations.

 

“This stability will inevitably create a more favorable environment for businesses and attract foreign investments, further boosting economic growth.”

.As FG denies purported directive to NNPCL to increase petrol price

However the Federal Government has denied that it had given the go-ahead to the Nigerian National Petroleum Corporation Limited, NNPCL to sell petrol at N1,000 per litre.

Minister of State for Petroleum Resources, Senator Heineken Lokpobori, issued the denial in a statement on Tuesday

The statement, signed by the Special Adviser to the Minister of State for Petroleum Resources, Nnemaka Okafor, said: “The Federal Government is compelled to address the outright falsehoods currently being circulated on social media, which claim that the Honourable Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed the Nigerian National Petroleum Company Limited (NNPCL) to inflate petroleum prices above the approved pump price.

“We categorically condemn these claims as baseless, malicious, and a deliberate attempt to incite public discontent.

“We challenge anyone in possession of any evidence – be it written documents, audio, or video recordings – that supports these fabrications to make it public.

“Such a claim is entirely devoid of truth and should be recognized as an intentional effort to mislead the public.

“It must be stressed that NNPCL operates as an independent entity under the Companies and Allied Matters Act (CAMA), with a fully empowered Board of Directors.

“The Ministry of Petroleum Resources does not, and will not, interfere in the internal decisions of NNPCL, including pricing matters.

“Any suggestion otherwise is incorrect and reveals a profound misunderstanding of the deregulated nature of Nigeria’s petroleum sector.”

 

.President didn’t lie about fuel subsidy–Onanuga

 

Reacting to the development in the nation’s oil and gas sector, Bayo Onanuga said ‘’I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments, following  NNPC Limited’s admittance it was owing suppliers some $6 billion.

 

Some of the stories have been written with relish, as the authors believed they have uncovered some scoops.

 

The truth is that there is no discovery. No lie uncovered.  The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023. Since then, subsidy provisions have disappeared from the budget. It was not in the Supplementary budget of 2023, not in the 2024 budget and the amended 2024 budget.

 

So the giddy headlines about the so-called unraveling of the Tinubu government’s subsidy payment; and return of subsidy were not justifiable.

 

Rather what has unravelled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer. That generous disposition by NNPC Limited, backed by a compassionate president unwilling to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued Naira.

 

The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent. The situation  has greater implications for the ability of the three tiers of government to function as the  NNPC has failed to pay into the Federation Account, the money that should go to the government.

 

There are no easy choices. Something must be done to make NNPC survive, keep the engines of government running and petrol flowing at the pumps.  That is the scenario that is unfolding and the game changer and big relief giver may well be the Dangote refinery and other local refineries which will become the fuel suppliers to the local market. When Dangote Refinery and other refineries,  including government owned Port Harcourt Refinery,  come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value-chain. There will also be  a drop in the huge demand for foreign exchange to import petroleum products.