Ebere Nwoji
2 January 2007
Lagos — THE Organised Private Sector (OPS) yesterday raised alarm over current high cost of petroleum products resulting from acute scarcity warning that the trend if unchecked would spell doom for the industrial sector and private businesses.
President, National Association of Small and Medium Scale Enterprises, Dr Ike Abugu who disclosed this in an interview with Daily Champion said scarcity of petrol, diesel and black oil portends negative outlook for the sector in the new year.
The cost of petrol has shot up from N65 to between N100 and N200 per litre in parts of the country following acute shortage of the product.
This has led to long queues of vehicles at the few filling stations that have the product.
Reacting to the development Monday, the Nigerian National Petroleum Corporation (NNPC) through its General Manager Public Affairs, Dr Levi Ajuonuma, blamed the scarcity on the activities of hoarders who anticipated a hike in the pump prices of products.
But according to Abugu, though government has explained that the development was not from the NNPC, the present situation should be immediately arrested.
He said what is happening now is contrary to initial promise by government for stability in the pricing of Petroleum products.
He said the small and medium industries will suffer it most because most of them have been sent out of business by unfriendly business environment in the country.
According to him, most of the industry operators have already concluded their business plans for the year based on the old prices of the products adding that any review would not be in the best interest.
In separate interview with our reporter, Executive Director Nigerian Textile Manufacturers Association Mr. Paul Olanrewaju said he was confused about the whole development since government said it was not aware of the increase.
He said if the increase turns out to be from government then it will be disastrous for manufacturing firms because the sector is already suffering from high cost of production which makes prices of their goods uncompetitive.
"If government is thinking so it should better stop it because it will be disastrous. Our production cost is about the highest in the world, our goods cannot compete internationally because of high price and if there is price increase in petroleum sector the price will go up further and we will find it difficult to dispose our goods, he stated.
Chief Innocent Izundu, Managing Director Izundu Wire and Steel Industries Onitsha said down the east prices are as high as N120, N150 per litre respectively.
He urged government to arrest the situation adding that he has finished his business plans for the year on the former prices of N65.00 per litre of Petrol and N80 per litre of gas.
He said change in price now will mean a change in their business plans and budget as well as hike in the prices of their products which is already higher that prices of imported ones.
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