Subsidy removal: Despite growing frustration, APC Governors back Tinubu
..NNPCL adopts average price of N500/litre
…Transportation costs hiked by over 50% in Lagos
…Increase in fuel price will accelerate inflation — NECA
…NLC rejects pricing template
By Ibiyemi Mathew
Governors under the ruling All Progressives Congress (APC) have thrown their weight behind the decision of President Bola Tinubu to remove fuel subsidy.
This is without recourse to the call by many Nigerians for the policy to be rolled out in stages in order to mitigate the effects.
Chairman of the APC Progressive Governors’ Forum and Imo State Governor, Senator Hope Uzodinma made the declaration on Wednesday after meeting with the Senator Abdullahi Adamu-led National Working Committee (NWC) of the party.
According to the new Chairman of the Progressives Governors forum, the main opposition presidential candidates, Atiku Abubakar of the Peoples Democratic Party PDP and Peter Obi of Labour Party LP also made promises to remove the subsidy because it had generally become unsustainable.
Uzodinma noted that, “As a Forum, we are committed to the ideals of the government that is also our party. Because the Federal Government belongs to APC. It is an APC-led government and everything that is contained in the manifesto of our great party during our campaigns is meant to be done and carried out.
“On the issue of fuel subsidy, all the presidential candidates during the campaigns promised that they will remove fuel subsidy.
“The Buhari Government before they left, made us know that fuel subsidy was no longer sustainable. What we are talking about now is the implementation process. How to implement the programme in a manner that it will not be too hard on the people and I think the government is working on it.
“I have confidence in the ability of the current president to navigate through the waters and take decisions that will be to the best interest of our people and the country as a nation,” he said.
…As NNPCL adjusts petrol pump price
The Nigerian National Petroleum Company Limited (NNPCL) has confirmed the adjustment of the market price for PMS.
NNPCL in a statement by its Chief Corporate Communications Officer, Garba Deen Muhammad on Wednesday, said, “NNPC Limited wishes to inform our esteemed customers that we have adjusted our pump price of PMS across our retail outlets, in line with the current market realities.
“As we strive to provide you the quality service we are known for, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics.
“We assure you that NNPC Ltd. is committed to ensuring ceaseless supply of products. The Company sincerely regrets any inconvenience this development might have caused.
“We greatly appreciate your continued patronage, support and understanding through this time of change and growth,”the statement read.
Based on the new price template, Nigerians will now be purchasing petrol at an average cost of 500/litre depending on the location they reside with Lagos State having the least price of N488 per litre while Maiduguri and Damaturu have the highest pump prices of N577 per litre.
The new NNPCL price template is applicable only to NNPCL retail outlets.
Transportation costs hiked by over 50% in Lagos
Meanwhile, commercial drivers in Lagos have increased the cost of transport fares due to the increase in petrol prices.
A commercial driver who spoke to journalists noted that a trip from the busy Eko Hotel roundabout in Victoria Island to CMS which would normally cost N200 will now go for N400.
Our reporters also gathered drivers now charge N800 – N1000 from Ogba to CMS/Eko which used to be N600.
Increase in fuel price will accelerate inflation — NECA
In response to the price hike of petroleum products, the Nigeria Employers’ Consultative Association (NECA) has said that increase in pump price of fuel would further accelerate inflation, which would distort and destabilise economic activities.
Director General of NECA, Mr Adewale-Smatt Oyerinde, in a statement on Wednesday said that the increase would shrink private sector business capital and lower the real disposal income of the people.
‘’The inaugural address of the President on fuel subsidy has generated heated reaction, with fuel queues returning to the petrol station and the prices of goods and services increasing astronomically.
‘’The increase, if not well managed, could lead to an increase in the prices of goods and services with consequential effects on the purchasing power of the already impoverished Nigerian.
“No doubt therefore, the economy would contract in terms of growth; business activities will face serious backlash; and aggregate consumption will fall due to inflationary pressure,” he said.
The NECA boss said that, while it was desirable to remove the fuel subsidy, it was also important that the removal was systematically and strategically done.
As NLC rejects pricing template
The Nigeria Labour Congress (NLC) has urged the Federal Government to immediately instruct the Nigerian Petroleum Company Ltd (NNPCL) to withdraw the just released pricing template to allow free flow of discussions by the parties.
The NLC President, Mr Joe Ajaero, made the call in a statement signed by him and made available to journalists on Wednesday in Abuja.
Ajaero said that the new pricing template is vexatious, an ambush and may scuttle its ongoing dialogue with the federal government.
According to Ajaero, government cannot in one breath be talking about deregulation and at the same time fixing the prices of petroleum products.
“We are worried that the Government through the NNPC despite the ongoing meeting of stakeholders in the Oil and Gas sector to manage the unilateral.
“But unfortunate announcement by the President to withdraw subsidy on petroleum products, went ahead this morning to announce a new regime of prices under a new pricing template.
“This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector.
“This negates the spirit of allowing the operation of the free market unless the government has, as usual, usurped, captured or become market forces. It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement,” he said.
