Fuel: Reps to probe arbitrary increase in petrol pump price.

From Cyril Mbah, Abuja, AKOR SYLVESTER -Abuja Jonas Ezieke, Abuja

 

The House of Representatives on Wednesday resolved to set up an Ad-hoc Committee to investigate the arbitrary increase in the pump price of petroleum products in Nigeria and loathed the recent increase in the pump price of petrol from N537 to N617 by the Nigerian National Petroleum Corporation NNPC and other oil marketing companies.

 

The House resolution was sequel to the adoption of a motion by Hon.Ikenga Ugochinyere representing Ideato North and South Federal Constituency of Imo State on the matter on the floor of the green chamber.

 

The lawmaker while debating the motion informed the House that section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

 

He further noted that Section 32 of the Petroleum Industry Act, 2021 saddles the Petroleum Midstream and Downstream Regulatory Authority with the task of regulating and monitoring technical and commercial midstream and downstream petroleum operations in Nigeria.

 

The lawmaker posited that on Tuesday 18th July, 2023 petrol pump price was increased from N537 to N617 by petrol marketers, without conferring with the relevant agencies of government.

 

He said, “Disturbed that in view of the current socio-economic challenges being faced by Nigerians, a hike in the price of fuel will heap great suffering and hardship on Nigerians”.

 

While calling the other lawmakers to support the motion, he canvassed that the recent increase by reversed by the relevant agencies.

 

Consequently, the House presided over by the Deputy Speaker Hon.Benjamin Kalu unanimously adopted the motion with a voice vote.

 

The Ad-hoc Committee is mandated to investigate the circumstances leading to the increment of the petrol pump price by the Nigerian National Petroleum Corporation Limited (NNPCL) and the marketers.

 

The probe panel is also empowered to propose palliative measures to be taken to ameliorate the sufferings of Nigerians and report back to the House within four weeks for further legislative action.

.Decision on new price  provocative, PDP berates APC

Meanwhile, Opposition Peoples Democratic Party (PDP) has berated the All Progressives Congress administration headed by Asiwaju Bola Ahmed Tinubu over the recent hike if fuel pump price per litre to N617 describing the development as “extortionate and provocative.”

The PDP insisted that in practical terms, fuel should not sell for more than N150 per liter anywhere in Nigeria stating that available indications shows that it is practicable to sell premium motor spirit cheaper than obtains at the moment.

 

The PDP National Publicity Secretary, Mr. Debo Ologunagba said on Wednesday that the party rejected the recent increases because it was outrageous, choking and unnecessary.

The Peoples Democratic Party (PDP) described the extortionate N617 per liter price of fuel endorsed by the All Progressives Congress (APC) as clear case of “maladministration and a provocative exhibition of extreme insensitivity and callousness towards Nigerians.”

The Party cautioned that the increase will undoubtedly worsen the already suffocating economic situation in the country under the APC and has the capability of triggering very serious crisis in the country if not reversed.

“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 present dire situation comes as a consequence of APC’s insensitivity, seething corruption, scandalous cluelessness and lack of capacity to effectively steady and manage the nation’s economy properly.

“Indeed, this is not the nation that Nigerians yearned for after the abysmal, harrowing and inhuman eight years of the Buhari-led APC administration as the situation has currently gone from a frightening bad to a terrifying worse with no hope in sight.”

Debo Ologunagba said the PDP dismisses the APC insensitive and lame argument of market forces and comparison of price of fuel in Nigeria with those of other countries which have functional infrastructure, variety of affordable alternative transportation system and sources of energy; strong currency and where citizens earn far higher amounts than what obtains in Nigeria.

He said, “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 concluded.

 

.Our members can only go to work 2 days weekly —Union

As Nigerians continue to groan over the present increase in the pump price of petroleum product, the Colleges of Education Academic Staff Union (COEASU) has resolved to go to work only two days in a week due to high cost of transportation, following the removal of fuel subsidy by president Bola Tinubu.

 

The union said the action will continue until government meets it’s demand for salary adjustment.

 

President Bola Tinubu,  had, during his inuaguration in May,  declared that fuel subsidy could no longer stay, the situation that fueled the price of petroleum product and increased the sufferings of the people.

 

As a result of the hardship,  the union has demanded for salary adjustment to enable it’s members meet up with the situation.

 

The national president of the Union, Smart Olugbeko, in a statement in Abuja Wednesday, called on the federal government to take immediate action on the union’s demand,  maintaining that failure to do so would have negative effects on the students

 

The statement reads: “The National leadership of our great Union in its extraordinary meeting held on Tuesday, 18th July 2023 had agreed to direct its members to go to work two days weekly until Federal Government yields to its demand of 200 percent increase in salary amidst the difficulty of members to get to work as a result of hike in the price of petrol.

 

“The implementation of removal of fuel subsidy by the Federal Government two months ago raised the price of a litre of petrol by 250%. This worsened the inflationary rate on the cost of transportation, food and other essential commodities and impoverished the Nigerian people. Workers, including staff of Colleges of Education, kept faith with Government and chose to endure the untold hardship thinking it would be only for a while as Government promised to roll out palliative measures including significant increase in salaries.

 

“Alas! While our capabilities to sustain hope were already exhausted, the price of petrol rose further to N650 per litre. Now, the leadership of the Union has been inundated by members’ complaints that they could no longer go to work as a result of hike in the price of petrol and resultant high cost of transportation.

 

“Against this backdrop, it has become inevitable for the Union to direct members to go to work only two days weekly while an emergency NEC meeting shall be convened to ratify this decision and decide on the specific days of the week members are to go to work.

 

“The present salary of staff of Colleges of Education was approved in the year 2010 – 13 years ago! This means we have been on same salary since 2010 while petrol price rose intermittently from N65/N70 in 2010 to N650 in 2023 (tenfold increase).

 

“Our salary structure which is subject to renegotiation at 3-year interval has remained static for 13 years, skipping four due renegotiations. It is ludicrous that Government has refused to return to the negotiation table on the welfare package for staff after the Union, prior to the removal of fuel subsidy, had proposed 200% increase in salary as against Government offer of a ridiculous 35% for Chief Lecturers and 23% for other cadres.

 

“We call on the FG to urgently do the needful because the inevitable action of the Union against this hardship will have devastating effects on the students as it will lead to a prolonged academic calendar – a semester of 16 weeks will become 32 weeks or more; while Teaching Practice exercise of 6 months will become 12 months.

 

“We call on His Excellency, President Bola Ahmed Tinubu to quickly address the issue of salary adjustment for staff of Colleges of Education. We believe in the capacity of the President to address this problem as he did when he was the Governor of Lagos State where he so generously increased the salaries of staff in the then Lagos State-owned Colleges of Education that they became the highest paid nationwide”, .

 

.Regulate food prices to reduce sufferings, Aba residents tell FG

Some residents in Aba have appealed to the federal government to regulate the prices of foodstuffs and other household commodities to ameliorate sufferings of Nigerians.

 

 

 

Some of the residents who spoke to the News Agency of Nigeria (NAN) in separate interviews  on Wednesday, said that the recent increases in fuel prices had further pushed food prices out of reach of many households.

 

 

 

Mr Chris Mlebedim said that the increase in the pump price of fuel to N617.00 per litre on Tuesday was unnecessary and a further step to impoverish the people.

 

 

 

“He just came on board and without proper economic planning, he is increasing the price of fuel and consequent price hikes is causing much pain on the people.

 

 

 

“And while looking at solutions to the problems, he is talking of sharing N8, 000 to few Nigerian households and increasing salaries.

 

 

 

“These cannot solve the problem of poverty these increases are now causing; he should seek the help of economists to save the situation including reducing food prices”, Mlebedim said.

 

 

 

Speaking in the same vein, Mrs Chinyere Okonkwo, a housewife, said that it was becoming very hard for her and her husband to feed their family of five twice daily.

 

 

 

She said that they have decided to take their children to public schools next session because  life had now become unbearable as their joint incomes could no longer meet their needs.

 

 

 

Also, Mr Obere Nkemakolam said that the government should be merciful on the poor and suffering Nigerians in order not to risk a rise in deaths and suicides.

 

“If nothing is done to ease people’s hardships, I bet that death rates will rise in Nigeria because many will die of heart-attack, hunger and diseases”, he said.

.Labour leader decries hike, urges Tinubu to roll out palliatives

A labour leaeder, Mr Temidayo Temola, has decried the recent increase in pump price of Premium Motor Spirit (PMS) from N520 per litre to N617 per litre.

 

The News Agency of Nigeria (NAN) reports that Nigerian National Petroleum Corporation Limited (NNPCL), on Tuesday, announced increase in the pump price of fuel to N617 per litre.

 

Reacting to the development, Temola, Chairman, Joint Action Congress (JAC) of Olusegun Agagu University of Science and Technology (OAUSTECH), Okitipupa, on Wednesday, said that many more citizens would be affected by the decision of government.

 

He said that the resultant effect of the subsidy removal on petrol by President Bola Ahmed Tinubu was seriously biting on Nigerians.

 

According to him, Nigerians are facing a tougher time since the removal of fuel subsidy.

 

“We just woke up yesterday to face another reality of increase in pump price of petrol, barely weeks after reeling from the announcement of subsidy removal by the new administration.

 

“Nigerians will continue to wallow in abject poverty because the situation is going beyond normal.

 

“The Nigeria Labour Unions (NLC) should as a matter of urgency wade into the situation as many Nigerians can no longer feed themselves and go to where they want to go because of high food prices and high transport fares,” he said.

 

Temola urged the Federal Government to as a matter of urgency roll out palliatives to cushion the effect of the fuel price hike.

.IPMAN says increase reduces sales volume by 50% in S/East

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the hike in the price of products due to abrupt removal of subsidy was threatening the survival of their businesses.

Mr Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community said average sales had dropped by about 50 percent from May 30 to date.

Anyaso, whose depot serves Anambra, Ebonyi and Enugu States, said marketers were facing existential challenge as low profits as a result of reduced sales was affecting their abilities to meet their operational cost and obligation with banks.

He said if the negative development was not urgently challenged, many operators would shut down, adding that it would result in the collapse of the downstream sector and loss of numerous jobs.

According to him, marketers are worse affected by this policy of subsidy removal, profitability has reduced because average sales has reduced by about 50 percent.

“Most marketers are finding it difficult to remain in business because increasing cost of operation, payment of workers and meeting bank obligations is becoming difficult.

“We appeal to the Federal Government to save downstream operations from collapsing by working on reduction in pump prices,” he said.

The News Agency of Nigeria (NAN) reports that Premium Motor Spirit now sells for between ₦630 and ₦640 in Awka, the capital of Anambra and its environ

.NUJ demands immediate reversal of hike

 

Also, The Nigeria Union of Journalists has called on the relevant authorities to immediately reverse the latest pump price of petrol in the country.

The call is contained in a statement issued by the National Secretary of the union, Mr Shuaibu Leman, and made available to newsmen in Abuja on Wednesday.

Leman stated that, while the body applauded the decision to remove the “costly” subsidy on petrol, “we had cautioned against a hasty implementation of the policy without putting mitigating measures in place to cushion the effects of the removal.

”We are saddened by the fact that today most people can hardly commute to work or other places of business without much stress because the embarrassing sudden surge in petrol pump prices has made it so.

”We, therefore, urge that the situation be reversed immediately, while adequate measures are considered and put in place to lessen the effects of the policy on the ordinary Nigerians,” he stated.

According to him, the ugly development has triggered off astronomical increase in transportation cost and price of food items beyond the reach of many citizens.

The News Agency of Nigeria (NAN) reports that the pump price of premium motor spirit, commonly called petrol, soared to N515 and slightly above per liter, with the removal of subsidy by the present administration.

On Tuesday, the price jumped to an all time high of N617 and above per liter and the authorities have attributed the development to the  forces of demand and supply in the international market.