Subsidy: No hike in petrol pump price for now –Presidency

By Adekunle Adesuji, Abuja

 

 

Presidency on Tuesday said there will be no further increase in the petrol pump price.

This is amidst the hike in the cost of living brought about by the removal of petrol subsidy which has led to a corresponding increase in fuel prices.

 

The Presidency  also said Nigeria is currently the only country in West Africa enjoying the cheapest and most affordable price of PMS, the Special Adviser to the President on Media and Publicity, Ajuri Ngelale told State House correspondents.

 

The presidential aide also noted that the daily consumption of fuel had dropped from 67 million litres to 46 million litres following the removal of subsidy.

 

Ngelale noted that  the proposed strike by the NLC is premature.

 

He said, “The president wishes first to state that it is incumbent upon all stakeholders in the country to hold their peace. We have heard very recently from the organised labour movement in the country with respect to their most recent threat.

 

“We believe that the threat was premature and that there is a need on all sides to ensure that fact-finding and diligence is done on what the current state of the downstream and midstream petroleum industry is before any threats or conclusions are arrived at or issued.

 

 

 

“Secondly, Mr. President, wishes to assure Nigerians, following the announcement by the NNPC limited just yesterday, that there will be no increase in the pump price of petroleum motor spirit anywhere in the country.

 

“We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.”

 

Ngelale said Tinubu is determined to maintain competitive tension within all sub-sectors of the petroleum industry.

 

 

“Secondly, Mr. President, wishes to assure Nigerians, following the announcement by the NNPC limited just yesterday, that there will be no increase in the pump price of petroleum motor spirit anywhere in the country.

 

“We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.”

 

Ngelale said Tinubu is determined to maintain competitive tension within all sub-sectors of the petroleum industry.

 

 

He said the president is determined to ensure that “our policy drawn up as well as policy implemented follows the cue that there will not be any single one entity dominating the market”.

 

He said, “The market has been deregulated. It has been liberalised and we are moving forward in that direction without looking back.

 

“The president also wishes to affirm that there are presently inefficiencies within the midstream and downstream petroleum sub-sectors that once very swiftly addressed and cleaned up will ensure that we can maintain prices where they are without having to resort to a reversal of this administration’s deregulation policy in the petroleum industry.”

 

.Manufacturers cry out

.as diesel price hits N950 per litre

 

Meanwhile, Oil marketers has said that the foreign exchange crisis in Nigeria and the recent implementation of a 7.5 per cent Value Added Tax on Automotive Gas Oil, popularly called diesel, had pushed up the cost of the commodity to between N900 and N950/litre in many states.

 

Local manufacturers say the situation may lead to the closure of some factories and job losses.

 

Speaking under the aegis of the Natural Oil and Gas Suppliers Association of Nigeria at a press briefing in Abuja, the marketers explained that their inability to access forex  was impeding their ability to import diesel.

 

The National President, NOGASA, Benneth Korie, told journalists that the cost of diesel was around N650/litre before the Federal Government introduced a 7.5 per cent VAT on the commodity.

 

The Federal Government had commenced the implementation of the payment of 7.5 per cent VAT on diesel on June 20, 2023.

 

Officials of the Nigeria Customs Service and Federal Inland Revenue Service had confirmed this in Abuja, stressing that AGO was not exempted from the payment of VAT based on the VAT Modification Order 2021.

 

 

Korie said, “Diesel price is now approaching N900 to N950/litre depending on where you are buying it from. Before the introduction of VAT on diesel by the FIRS, diesel was around N650/litre.

 

 

“This increase in price is also due to the scarcity of  dollar. The government has to intervene in this dollar situation. All bank CEOs, Central Bank of Nigeria and others must meet to address this dollar issue. The way it is going, it will destroy a lot of things for us if it is not controlled.”

 

Korie also called on President Bola Tinubu to get Nigeria’s refineries working. He said the pressure by marketers and other importers on dollars would reduce when Nigeria’s refineries start to pump out refined products.

 

 

“Our refineries were built by human beings and can be fixed by human beings. I believe Nigerian engineers can fix these refineries, instead of us depending on imports. This is not sustainable.

 

“We are pilling pressure on the very limited dollars in the country by importing petroleum products and other commodities. But once our refineries start working, this pressure will drastically reduce. The government has to fix our refineries,” he stated.

 

 

 

.Manufacturers lament hike

 

Reacting to the development, the Director-General of the Nigerian Textile Manufacturers Association, Hamma Kwajaffa, said several textile manufacturers were contemplating to shut down their  operations owing to rising costs, largely caused by skyrocketing energy costs.

 

The DG said textile manufacturers could not afford to buy diesel at the projected price of N950.

 

 

He said, “Many are contemplating closing for now. We can’t meet up with that kind of amount. We have less than 24 textiles factories today, those who are working are contemplating closure. They have been pushed to the wall. These businesses are not  charity. They have to break even.

 

In the same vein, the Chief Executive Officer of Coleman Technical Industries Limited, George Onafowokan said increased diesel costs implied increased cost of production for the company.

 

 

He urged the government to find lasting solutions to the constant increase in diesel costs.

 

 

Onafowokan said, “Whenever the price of diesel goes up, it makes everybody’s cost go up. Logistics costs will go up for everybody, power costs will go up if diesel sells at N950.

 

“We are all in crisis. For most businesses in Nigeria, especially manufacturers, we are taking hits day in day out and sincerely, the government needs to do better not only in giving palliatives to the people, but for the businesses that are employing them, especially manufacturers.”

.No plans to increase taxes — FG

However, the Federal Government says it has no plans to increase taxes or add to the burdens of the country’s tax paying citizens.

The Chairperson, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, said this on Tuesday while reacting to unconfirmed reports of government’s plans to increase taxes.

The tax expert revealed that what government proposed was to reduce the country’s over 60 official taxes down to a single digit tax number.

According to him, the plan is to be able to reduce the number to single digit so that across all levels of government, you do not pay more than 10 taxes.

“We are confident that this is possible with the support of everyone and we will continue to do what we can to close the tax gap to generate revenue instead of increasing taxes.

“We have the inaugural meeting of the committee and workshop next week Tuesday and more information will be provided to the public afterwards,” he said