- 'Increase will hurt businesses, worsen inflation'
- Citizens urge gov't to reconsider
- Dangote refinery rolls out PMS, silent on cost
From Abdullateef Aliyu, Dotun Omisakin (Lagos), Abdullahi Sidi (Kano), Ado A. Musa (Jos), Mumini Abdulkareem (Ilorin), Idowu Isamotu, Dalhatu Liman & Abubakar S. Isah (Abuja)
The Nigeria Labour Congress (NLC) yesterday demanded immediate reversal of the latest hike in the price of petrol across the country.
NLC President, Joe Ajaero, said the labour movement felt betrayed by the federal government over the fresh hike in the price of petrol.
Although the Nigerian National Petroleum Company Limited (NNPCL) did not officially announce a price increase, its outlets and other major filling stations nationwide adjusted petrol pump prices upward yesterday.
In Lagos, NNPCL stations adjusted their price to N855 from N568; Kano, N902; Abuja, N887 per litre from N617.
This happened two days after the NNPCL notified the public of its $6 billion indebtedness to importers and its financial strain.
He recalled that President Bola Ahmed Tinubu had told the organised labour, during the negotiation of the minimum wage to choose between N250,000 and increase in price of fuel or accept N70,000 and allow the price of petrol to remain the same.
"But here we are, barely one month after and with the 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 the government that its approach to resolving the fuel subsidy contradictions was patently faulty and would not last, its 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 jacked 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," Ajaero said.
He said appropriate organs of the NLC would meet to make appropriate decisions which would be made public.
He added: "We insist that the government cannot criminalise protests or basic rights in the domain of the citizenry."
He said the union, among other things, demands immediate release of all those "incarcerated" are being prosecuted on the assumption of having participated in the recent protests, halt of indiscriminate arrests and detention of citizens on trumped up charges and reversal of the 250% tariff hike in electricity.
Ajaero alleged that the police and other security agencies had since been on "rampage terrorising the citizenry in pursuance of government's agenda of muzzling lawful dissent".
He asked the government to halt many of its policies that made hunger and insecurity fester in the land, saying it should stop hounding Nigerians forthwith.
"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 cybercrime with an intent to overthrow the government of President Tinubu.
"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.
"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", he said.
New pump price'll worsen inflation - NACCIMA, NASME
The Director-General of the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), Sola Obadimu, told Daily Trust that the new pump price regime would worsen inflation and the cost of doing business.
"There is serious propensity to further spike inflation and the cost of doing business and the consumers' wages are static. Even if you want to put the cost to consumers, their wages are static. And if consumers are not buying, there would be stockpiling of debts and if that happens, we might need to decapitalise and lower our production capacity. It is not good for business. It is an added burden to business.
"We are in a challenging time. We are in a period of stagflation where we have a consistent rise in inflation", he said.
He said the only solution is to have sufficient local production of PMS in a bid to stabilise the prices.
"It's only when we have full/sufficient domestic production that can cover local consumption (and probably export the excess to generate earnings) that we can witness stabilised prices of refined petroleum products. If we continue to be import-dependent, it will be difficult to experience stable prices in Naira terms as everything will continue to be forex rates dependent," he added.
On his part, the Lagos State Chairman of the National Association of Small and Medium Enterprises (NASME), Prof. Adebayo Adams, said businesses would not flourish with the new hike in fuel price, predicting that prices of goods and services would go up.
"We are still saying there is no food. This is becoming too much. The government doesn't seem to understand the economy again.
"Businesses are collapsing every day. Any little money you get now you spend it on fuel and food. The country is not smiling at all. The price of things will start going up", he said.
Citizens express frustration
Nigerians across the country yesterday expressed their frustration over the latest increase in the price of petrol.
Three NNPCL stations along the Ogunnusi Road, Ojodu, and Acme Road, New APC Secretariat, Lagos did not dispense the product yesterday.
An NNPCL station at Yaba, which adjusted its pump price from N568 to N855, was not selling when our correspondent checked but there was a long queue of vehicles waiting in anticipation of the sale of PMS.
But other major stations like Mobil had adjusted their prices from N618 to N868 since Monday.
A Lagosian, Mousco Obeahon, said his hope for a better economy had waned. "The fuel price is becoming something else and it is affecting everything generally. They went to protest and it increased," he said.
He said his transport fare had increased by 50 percent.
Anger in Kano as petrol sells for N1,200
Motorists in Kano expressed anger as NNPCL stations in the state adjusted the petrol price to N902 per litre, while other stations raised theirs to N1,200.
A motorist, Isah Muhammad, asked, "Where are we heading to in this country? How do we survive now? It's very unfortunate we are witnessing this."
A commercial driver, Hamisu Hassan, was angry that even though the price has been jerked up, the filling stations were not selling.
In Jos, the Plateau State capital, an NNPCL station around Dogon Dutse dispensed petrol for N897; and other stations sell at N920 and N1,000. Motorists and other residents, who spoke to Daily Trust, expressed disappointment.
In Kwara State, NNPCL stations adjusted their prices to N877 from N585. A motorist, who simply identified himself as Ademola, lamented the new price regime, saying it "will only worsen the masses' situation."
Abuja turns to black marketers as scarcity worsens
Residents in the nation's capital, Abuja, resorted to buying petrol from roadside vendors.
A motorist at Garki II, Isah Mohammed Sabo, said: "I bought a litre for N870 at the NNPCL filling station in Area II, while at the AYM Shafa station in Area III, it was sold at N880."
A taxi driver, Kasim Atiku, said, "I bought fuel at a staggering N960 per litre from the NNPC filling station at Gwarimpa, compared to N617 previously. Non-NNPC outlets are even worse, selling at N1,100 to N1,200 per litre around Gwarinpa".
Dangote rolls out petrol, silent on price
Meanwhile, the Dangote Group yesterday rolled out petrol from its 650,000 barrels per day refinery in Lagos, but did not provide an inkling on how much it will sell the product per litre.
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The President of the Dangote Group, Aliko Dangote, while speaking at the refinery in Ibeju-Lekki, Lagos, said this development would boost the industrial and manufacturing sectors.
However, when asked about the price in a live interview on Channels Television, Dangote said discussion was ongoing with the regulatory authorities following an approval from the Federal Executive Council.
He said that the PMS will hit the market in the next 48 hours subject to approval from the NNPCL.
"Pricing is controlled by NNPC. For now, we focus on ensuring that the products are available--that's what I can guarantee," Dangote said. He said the refinery will significantly reduce fuel imports, saving foreign exchange, and will contribute to stabilising the naira, lowering inflation, and reducing the cost of living.
He thanked Nigerians for their support and praised President Tinubu for fostering an environment that made the successful launch of the 650,000 barrels per day refinery possible.
"This initiative will bring much-needed stability to the Naira by reducing the demand for dollars in the market by 40%, which will help stabilise the exchange rate.
"But that's not all. It will also address issues like 'round-tripping,' where fuel is documented but doesn't actually enter Nigeria. With this new refinery, we will have a clear view of true consumption. We'll be able to track every loaded truck and, as much as possible, monitor loaded ships. This will allow us to precisely determine consumption patterns, though that's a topic for another discussion.
Displaying a sample of the PMS to the press, Dangote said: "This petrol might be a bit cleaner compared to what we had before. It's of the highest quality, ensuring that your vehicle's engine will last longer. The quality of this fuel can match any premium standard worldwide, including those in Europe and America. No one can surpass us in terms of quality. Today is truly a celebration for us Nigerians.
"We are committed to ensuring that starting in October, there will be no need to import polypropylene. Our petrochemical plant will be fully capable of meeting all local demands", he said.
