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Tag: Fuel Subsidy

  • Nigeria on brink of collapse over subsidy removal – Catholic Bishops lament

    Nigeria on brink of collapse over subsidy removal – Catholic Bishops lament

    Following the removal of fuel subsidy, the Catholic Bishops Conference of Nigeria, (CBCN) has said the effects has put the country on the brink of collapse.

    The President of CBCN, Most Rev. Lucius Iwejuru Ugorji, in a homily delivered at the Maria Assumpta Cathedral, during the reception of the Supreme Subordinate President of the Knights of St. John International, at the weekend, said Nigeria might be heading for the precipice if nothing urgent is done to effectively check the current economic crisis facing the nation and its citizens

    According to him, “The suffering in the land has over the years been galloping uncontrollably. Our growing economic crisis became exacerbated with the recent withdrawal of petrol subsidy by the Federal Government. Indeed, Nigeria is on the brink of collapse.

    “Government has not ceased to inundate citizens with it’s fabled palliative measures to cushion the effects of the subsidy removal. I am sure those running the nation’s affairs at all levels know that palliative measures can never be a cure for any economic or health challenge.

    “If Nigerians are given food items as palliatives, we will definitely go hungry again, after consuming the food. So, I ask: Why waste resources on palliative measures, instead of attacking the problems frontally?

    “Provision of a constant source of energy remains the driving force in all developing and developed economies. Why is ours different? Why should we not subsidize fuel?

    “We have severally been told that some people have been enriching themselves from our commonwealth through petrol subsidy. For many patriotic citizens, this argument does not hold water.

    “Why has the government failed, is unwilling or incapable of identifying the supposed culprits and bringing them to account for their sordid act?

    “There is a lot of deceit and corruption in the land. How can anybody explain why and how the former administration hurriedly commissioned the Dangote refinery, which is yet to start production? So, why the haste in commissioning an unfinished project?

    “There is also the fabled story of the supposed Nigerian airline and how an aeroplane was hired or borrowed to flag off its operation. Where is the airline today? Has anyone been asked to account for the act? This is not a good national testimonial.

    “The root of Nigeria’s problem is massive corruption. For Nigeria to survive, we must collectively fight corruption, whichever way it rears its ugly head.

    “Government must be told that we cannot afford the luxury of punishing the entire populace, because of the corrupt tendencies of a few. This is not fair to all concerned.”

  • Subsidy: Why FG meeting with labour unions did not hold

    Subsidy: Why FG meeting with labour unions did not hold

    The scheduled meeting between the Federal Government and the labour unions did not hold as expected on Friday

    The meeting was part of the process of arriving at sustainable decisions on the palliatives to be provided to Nigerians due to the removal of subsidy on petrol by the federal government.

    After a meeting on Wednesday, Mr Festus Osifo, Trade union Congress (TUC) President, had said that the talks would continue on Friday.

    However, an official of one of the unions at the Friday’s scheduled meeting, who pleaded anonymity, told State House Correspondents that the meeting could not hold because of lack of quorum.

    ‘’The meeting did not form a quorum. If there is no quorum, we are a people that operate on the basis of process. So, if there’s no quorum in a meeting what do you do? You will adjourn for lack of quorum,’’ he said.

    Recall the federal government had pledged to continue to work out measures to ameliorate the effect of the fuel subsidy removal on Nigerians.

    These measures include the introduction of the use of Compress Natural Gas, mass transportation and cleaner energy alternatives.

    Ms Olu Verheijen, President Bola Tinubu’s Special Adviser on Energy, disclosed this at the end of the Wednesday meeting with the unions in Abuja.

    She said that the meeting made progress in agreeing to fast track a lot of the intervention that would stop the strike planned by the labour unions next week.

    ‘’But we are making progress, we’re trying to address the issues that will prevent a strike. We have to get it right. It’s important that we do this well, and we keep our promises.

    ‘’So it’s important that whatever is announced actually gets done. We don’t want to make big announcements and continue to lose people’s trust.

    ‘’It’s important that we build trust, and that most of the announcements and the plans that we roll out are credible and impactful,’’ said Verheijen.

    She assured that Tinubu was taking measures to address issues concerning the palliatives, adding that he is very concerned about it.

    ‘’He is concerned about it, as you’ve seen all of us working round the clock here to make sure that we are able to announce these measures as quickly as possible. It’s a whole package of issues that we’re rolling out as quickly as possible.’’

  • Everywhere don red – By Francis Ewherido

    Everywhere don red – By Francis Ewherido

    I am not an economist. If you want to listen to or read real economic analysis, both the ones you understand and the ones that are alien to you, go and listen to Mr. Bismarck Rewane and his likes. But I did economics in secondary school and got a credit, plus what I have learnt since then, especially in a turbulent economy like ours. That is the foundation on which I am tiptoeing into this unfamiliar terrain.

    I have been an advocate of the discontinuation of fuel subsidy. I am not averse to enjoying a little of the natural gifts God gave to us, but the poor management of our economy made the stoppage inevitable. More annoying is our inability to police our borders properly which made us subsidise fuel for at least four other countries. Common sense readily tells you that it is senseless. Fuel subsidy had to go.

    But I agree with people who feel that the subsidy removal should have been better managed and measures should have been put in place to lessen the inevitable negative effects on Nigerians. Now that we have realised that, how are we going to go about it? Please note that we are all affected. We go to the same petrol stations to buy fuel and markets to buy food and other items. Some state governments are getting buses for civil servants to ease transportation challenges, etc. Some states are also about to pay civil servants N10,000 monthly to cushion the effects of the high cost of living. I have no problem with that, but the gesture should be extended to other citizens. Many of them are taxpayers and therefore stakeholders.

    Two, sometime ago, the federal government exempted companies with less than N25m annual income from paying certain taxes. It is about time the federal government and all state governments implement such a policy in PAYE for low income earners. Righty now, the Nigerian Labour Congress and other trade unions are asking for a review the minimum wage to between N200,000 and N300,000 monthly for their members. When the new wage age is agreed on, where is the money to pay government workers going to come from? Apart from the federation account and federal allocation to states, internally generated revenue is the only other source of revenue states have. IGR includes PAYE of employees within the state. Right now, many private businesses are unable to pay the subsisting N30,000 minimum. When government now increases the minimum wage of civil servants, it will now use income from PAYE of non-government workers who are already underpaid to pay the new salaries of civil servants. That does not make sense to me. Some of the companies remitting PAYE to states owe their own staff salaries in arrears but they are forced to remit PAYE every month to avoid sanctions!

    Talking about minimum wage, if it is increased to N200,000, only oil companies, telecoms companies, banks, fintechs and a few others can afford that amount. Most accounting firms, insurance broking firms, architectural firms and other practitioners within the building industry; retail shops and many others in the informal sector are struggling to pay the N30,000 minimum, not to talk of increment. They just can’t afford it. The government needs to look into this to stem the attendant of massive unemployment.

    The major problems that most Nigerians have right now is dwindling purchasing power. The weak purchasing power has been worsened by increase in price of petrol and depreciation of the naira. A wholesome solution should be on how to boost the purchasing power of many more Nigerians, not just civil servants and those who work in companies that can pay N200,000 minimum wage. They are a small percentage of the population. MSMEs and the informal sector employ more people. Small businesses need more support to be able to pay better salaries and employ more people. The ease of accessing loans at minimal interest rates need to be improved on. Government needs to come up with policies to breathe life into MSMEs. As I said at the beginning, I am not an economist, I am writing as a small business owner who is also feeling the pinch.

    Finally, let me add my voice to the plan by the federal government to give 12 million vulnerable families N8,000 monthly over a designated time to cushion the effect of the economic hardship. Many people have criticised the plan. I also feel N8,000 monthly is not enough. It needs to be increased and the process has to be transparent. But I do not share the view that N8,000 is rubbish money. Our NGO worked with many vulnerable people in those days and I appreciate the value of every kobo. We gave one woman additional N5,000 for her roadside akara (bean cake) business and that helped her to see two or three of her children through the university. The release of one inmate in Kirikiri Correctional Centre was delayed for months until we met him paid the N5,000 and got him released. Many Nigerians currently earn below N30,000 monthly. An extra N8,000 will do them a world of good.

    At a personal level, I used to buy goods from Aba in the 90s. I travelled with the first flight to Port Harcourt, concluded my transactions and came back with the last flight. On this day, there was a heavy rain in Aba and everywhere was flooded. By the time I got to Port Harcourt, the last flight had departed and I had to spend the night in Port Harcourt. I had limited cash left. After paying for accommodation and taking dinner, I had exactly N2,650. The ticket was N2,610. I could not go to the airport in a chartered taxi anymore. Sharing the taxi with others cost N40, so what was left was exactly money for flight ticket was exactly N2610. The taxi driver had earlier told me that he would charge N10 extra for excess luggage which I vehemently opposed. When we got to the airport, I gave him a N50 note. He refused to give me the N10 change and I needed it to complete the money for my flight ticket. At that point, I knew I had to eat humble pie. I waited for all the passengers to leave. Then I pulled him back and explained to him that I needed the N10 to complete the money for my flight ticket. “Is that true,” he asked me in Igbo. “Yes o,” I responded. He returned the N10 and that was how I was able to fly back to Lagos. I had left my car at the airport. Instead of taking the shorter route through the toll gate, I went through the longer Ikeja-Maryland route because I had no money to pay for toll. As a result of these experiences and a few others, I learnt to treasure every kobo. Before debit card took over, I used to have every denomination of note either in my wallet or car. No money is small.

    I agree that the N8,000 should be increased, but no take your big man eye look N8,000 as small money. The sum of N8,000 means the world to some people. For people who earn N20,000 monthly, additional N8,000 will bring a lot of relief. I once worked with some “agbaya” (unserious) artisans. They would be absent from work for days. At the end of the month, we deducted money for the period they were absent. I saw in their eyes that if it were possible they would kill me. I insist N8,000 is not chicken feed, but government should please increase it. What is worth doing is worth doing well.

  • Subsidy Removal: NULGE demands 300% minimum wage increment

    Subsidy Removal: NULGE demands 300% minimum wage increment

    The Nigeria Union of Local Government Employees (NULGE) has called for 300 per cent increment in the minimum wage for workers across all sectors due to the inflation caused by the removal of fuel subsidy.

    NULGE National President, Mr Ambali Olatunji, said this in a communique jointly signed by Mr Isah Gambo, General Secretary of the union, at the end of its regular National Executive Council (NEC) meeting on Thursday in Abuja.

    Olatunji said that the 300 per cent rise was imperative considering the inflation necessitated by the removal of fuel subsidy on local government staff.

    Accordingly to him, it is the position of NULGE that there should be 300 per cent rise in the minimum wage for all Local Government workers and other public servants including private sector workers.

    He also said that considering the overbearing posture of the state governors on local government which had left it prostrate in the country, there was need for state of emergency to be declared on local government administration.

    This, he said would address the infrastructural decay, poverty and state of unemployment across the local governments in the country.

    Olatunji also said that government as a matter of urgency should create a special intervention fund to take care of aforementioned social welfare and infrastructural decay through the Ministry of Special Duty.

    NUGLE boss said that the proposed fund should be able to carter for projects and programmes in conjunction with local government.

    He further called on the federal government to establish a special agency to collaborate with the local government administration in administering the fund for the development and the transformation of the rural areas.

    He added that considering the state of insecurity that had affected food production in the country, the local government administration should be assisted in establishing special vigilante to protect farmers.

    He, however, acknowledged the effort of federal and state governments to cushion the effect of the economic policies on citizens.

    Olatunji also urged the government to utilise the 800 million dollars from World Bank to provide mass transit and other interventions especially in the auto-mobile spare parts companies, to carter for the transport need of the masses.

    “This will discourage importation, alternate energy provision (CNG), vocational skill acquisition centers for youth and women,” he said.

    He also advised government to give tax rebate/holiday for low income earners and small scale entrepreneurs, as a way of encouraging and sustaining their businesses.

    He condemned the attacks on local government secretariats in Plateau, Anambra, Abia and Enugu states by gunmen nothing that they were unwarranted.

    Olatunji while calling for urgent re-opening of the 17 local governments in Plateau shut down as a result of alledged political crisis, urged the SGF to expedite action on the scheme of service for the local government.

    “It is the conviction of the union that autonomy for local governments remains the best way to return the country to the part of development and growth.

    “This will translate to the direct funding of local governments without which no genuine national development can be achieved,” he said.

    He also called for the establishment of Local Government Police (Community Police) to address the spate of insecurity across the country.

    Olatunji further called for special rural allowances for local government staff to discourage rural-urban migration.

  • Fuel Subsidy Removal: NEC endorses mass deployment of Compressed Natural Gas (CNG) vehicles

    Fuel Subsidy Removal: NEC endorses mass deployment of Compressed Natural Gas (CNG) vehicles

    The National Economic Council (NEC) has approved the planned mass deployment of Compressed Natural Gas (CNG) vehicles to all states for public

    The Director of Information, Office of the Vice President, Mr Olusola Abiola, made the statement on Thursday in Abuja.

    Abiola noted that the decision to approve the proposal is part of the resolutions at the NEC meeting chaired by Vice President Kashim Shettima.

    Shettima said the federal government will vigorously pursue the mass deployment of CNG and electric vehicles nationwide.

    “We will also vigorously pursue the mass deployment of CNG-powered vehicles and establishment of autogas conversion plants/kits in all states in the short-term.

    “We will also deploy electric buses and cars with charging infrastructure across the country.”

  • PDP vehemently condemns petrol price hike

    PDP vehemently condemns petrol price hike

    The People’s Democratic Party (PDP) has said the increase in the price of petrol to N617 per liter is excessive, unacceptable and unjustified.

    The PDP made its stand known in a statement by its National Publicity Secretary, Debo Ologunagba, on Wednesday in Abuja.

    “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,” he said.

    Ologunagba added that even with the removal of subsidy on petroleum products, the PDP maintained that fuel should not be sold for more than N150 per liter in Nigeria.

    He said that with a deft, transparent and innovative management of resources, economic potentials, national comparative advantage and expanded value chain in refining capacity, the price should not be more than N150.

    Ologunagba said that the rising cost of fuel has worsened the economic conditions of Nigerians, and charged the All Progressives Congress (APC) led administration to seek ways to stabilise and grow the economy.

    The national publicity secretary also said that the PDP was alarmed over the fall in the value of naira.

    He explained that the situation had forced businesses and production to shut down, make citizens lose their jobs and crippled commercial and social activities.

    According to him, millions of families can no longer afford their daily needs as the cost of food, medication and other essential goods and services continue to skyrocket.

    The PDP scribe said that this was not the country that Nigerians yearned and voted for.

    He dismissed the argument of market forces and comparison of price of fuel in Nigeria with other countries, saying that the countries being mentioned have functional infrastructure, transportation system and energy.

    The PDP national publicity secretary added that the currencies of such countries were very strong while their citizens earn far higher than what obtains in Nigeria.

  • Drama as Reps reject motion to suspend fuel price increase

    Drama as Reps reject motion to suspend fuel price increase

    There was mild drama on the floor of the Nigerian House of Representatives on Wednesday as Reps debated and rejected an amendment motion to suspend the latest increase in the price of fuel.

    TheNewsGuru.com (TNG) reports the amendment motion moved by Rep. Yampa Zakaria (PDP-Adamawa), asking the House to order a suspension of the hike in fuel price.

    However, members of the House voted in favour of the N617 per litre price of petrol, citing market forces as the determinant.

    Zakaria had argued that the price hike suspension would enable the House to invite the Group Chief Executive Officer of NNPC Ltd., Mr Mele Kyari, to appear before it to explain the move.

    Rep. Shettima Ali (APC-Yobe) seconded Zakaria’s motion, urging that the price hike be reverted pending the appearance of Kyari before the House, but the amendment was rejected.

    The amendment sought was based on a motion moved earlier by Rep. Ikenga Ugochinyere (PDP-Imo).

    Ugochinyere had noted that Nigerians woke up on July 18 to find to their chagrin that petrol price had been increased from N537 a litre to N617 a litre.

    He urged the House to constitute an ad-hoc committee to look into the incessant increases in pump prices of petrol by the Nigeria National Petroleum Company Ltd. (NNPCL).

    He noted that the price increases had affected transportation and prices of foodstuffs, leaving many Nigerians helpless.

    Contributing to the debate on the motion, the Deputy Speaker, Rep. Benjamin Kalu, who presided over the plenary, conceded that the motion was prompt.

    He, however, defended the move by the NNPCL, arguing that market forces were the factors at play since the removal of fuel subsidy.

    Rep. Amobi Ogah (LP-Abia) in his contribution also conceded that market forces determined the price hike.

    When the Deputy Speaker put the amendment motion to a voice vote, members rejected the proposed reversal and ruled in favour of N617 per litre of petrol.

    The House also summoned Kyari and his team to explain to the House the rationale behind the increase.

    The lawmakers also set up an ad-hoc committee with members drawn from the six geopolitical zones of the country to determine the rationale behind the increase.

  • Colleges of Education staff reduce work days in protest

    Colleges of Education staff reduce work days in protest

    The Colleges of Education Academic Staff Union (COEASU) has directed its members nationwide to go to work two days weekly until the Federal Government yields to its demand of 200 per cent increase in salary.

    This is contained in a statement signed by COEASU National President, Dr Smart Olugbeko in Abuja on Wednesday.

    Olugbeko said the decision was reached at the union’s extraordinary meeting held on Tuesday, amidst the difficulty of its members to get to work as a result of hike in the price of petrol.

    According to him, the implementation of removal of fuel subsidy by the federal government two months ago raised the price of a litre of petrol by 250 per cent.

    ”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.

    ”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,” he said.

    Olugbeko explained that it became inevitable for the union to direct members to go to work only two days weekly.

    He added that an emergency NEC meeting would be convened to ratify the decision to decide the specific days of the week members were to go to work.

    ”The present salary of staff of colleges of education was approved in 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 three-year interval has remained static for 13 years, skipping four due renegotiations.

    ”We call on the federal government 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 six months will become 12 months,” he said.

    The national president, however, called on President Bola Tinubu to quickly address the issue of salary adjustment for staff of colleges of education.

  • Petrol queues resurface nationwide as NNPC confirms price hike

    Petrol queues resurface nationwide as NNPC confirms price hike

    The hike in the pump price of petrol first reported in Abuja, the Federal Capital Territory (FCT), on Tuesday morning, has trickled down to other parts of the country, resulting in fuel queues.

    A correspondent, who moved round the Lagos metropolis, observed that most filling stations had adjusted their pump price.

    The correspondent also noticed that fuel is sold between N580 and N600 at most filling stations, owned by both major and independent marketers.

    The hike in price of petrol is sequel to the increase in ex-depot price of petrol from N446.57 per liter to N580 per liter.

    However, the situation has triggered panic buying as motorists raced to filling stations to buy petrol.

    There were queues at Mobil Filling Station on Ikorodu Road, TotalEnergies at Mobolaji, Amuf at Bariga and Conoil in Ikorodu while there were vehicles on a long stretch within and outside most of the facilities.

    A visit to Northwest Station in Gbagada showed N570 per litre, Mobil at Anthony, N580, Amuf in Palmgrove, N558 and Conoil in Ikeja, N590.

    Also some of the NNPCL retail outlets monitored were selling at N600 per litre.

    Consequently, queues extended to the roads from the facilities, compounding traffic woe.

    Petrol hits N617 per litre in Abuja

    TNG reports the hike in price of petrol from 537 to 617 naira per litre was first reported in the Federal Capital Territory.

    A correspondent who monitored the petrol situations in Maitama, Wuse, Gwarimpa, Jabi, Wuye and Kubwa areas of Abuja reports that there are long queues in filling stations still selling at the old price.

    Most  stations have adjusted their pump prices to N617 to N620 but AA Rano, Nipco in Jabi are still selling the old price and some other few places.

    Also, the Nigerian National Petroleum Company Limited (NNPCL) station is selling at the new price.

    A fuel attendant whom pleaded anonymity said that they would adjust their pump price before the end of today.

    A customer who confirmed this development, Mr Emma Uzor, said that it is a terrible situation.

    “We are still battling with new price and with two months they increase it again, this is not fair to the masses.

    “No information or reasons for the increment, how do they want the poor masses to survive? The salaries have not been increased and food prices have risen.

    “The government should go back to their drawing board and come up with favourable conclusion from the citizens,” Uzor said.

    PMS sells for ₦640 per litre in Awka

    In Awka, the capital of Anambra State, the price of Premium Motor Spirit (PMS), otherwise called fuel, has risen from between ₦630 to ₦640 per litre.

    A correspondent who monitored the situation in Awka on Tuesday reports that independent marketers adjusted their pumps on Tuesday morning.

    The increase was against the price range of between ₦530 to ₦540 which prevailed until Tuesday.

    The NNPC in the town was not selling as it was closed to customers.

    However, RainOil outlets in Awka were still selling at N600 per litre as at press time.

    Some motorists who spoke to NAN expressed shock over the sudden increase in PMS price.

    Mr Anthony Umeh said he was just recovering from the effect of subsidy removal before the recent increase.

    Umeh said it was unfair that one could only get eight litres of PMS with N5,000 in a country that is one of the largest producers of crude oil in Africa.

    “The increase is unfortunate, normally ₦5,000 will give me 25 litres but I just got eight litres.

    “This is unacceptable in a crude oil-rich Nigeria,” he said.

    In a reaction, Mr Chinedu Anyaso, Chairman of IPMAN, Enugu Depot Community in charge of Anambra, Ebonyi and Enugu, acknowledged that there was an increase in price of products.

    Anyaso said the adjustment was as a result price list issued by NNPCL.

    Motorists express shock over new petrol price in Ibadan

    Meanwhile, motorists and commuters in Ibadan have expressed shock over the new pump prices of Premium Motor Spirit (PMS), otherwise known as petrol, announced on Tuesday by Nigerian National Petroleum Company (NNPCL).

    NNPCL had, on Tuesday morning, announced the adjustment of the pump price of petrol from N539 per litre to N617 per litre, saying this was in response to market realities.

    A correspondent, who moved round Ibadan metropolis, observed that as the news of the fuel price increase filtered out, some filling stations hurriedly closed shop, with their managers saying that they were awaiting further directives from the authorities.

    The few filling stations that were selling the product witnessed long queues of vehicles, while they were selling for between N560 and N650 per litre.

    A motorist, Mr Anu Alani, said he woke up on Tuesday to see that many filling stations were not opened for business and those who were selling increased their price to N650 per litre.

    “I was thinking that when I go farther, I would see where I could buy fuel at the normal price but I didn’t. I don’t know what to do again as the economic situation is already bad,” Alani said.

    Another motorist, Mrs Ayoola Olaoba, said that she would have to find a means of leaving the country, as things did not look like it would get better soon.

    “I bought fuel some days ago at N520 only for me to see some of my colleagues saying it has increased to N620. I said just like that!

    “I do not think I can continue with the uncertainty trailing the present economic situation,” she said.

    A commercial motorist, Mr Gbenga Oriowo, said that the new price would definitely have an attendant effect on transport fares.

    “I am still in queue now and there is little or no probability that I will get fuel, and even if I get, I cannot but increase the transport fare. We will all have to bear the situation,” he said.

    Oriowo said that government needed to explain to Nigerians what was going on and the rationale behind the new price regime.

    Another motorist, Mrs Funmi Alli, said some major marketers had closed their filling stations, saying that this had contributed to long queues where the fuel was available.

    She expressed the fear that the fuel price increase would have spiral effect on food prices and every other thing, which might increase the hardship already being faced by Nigerians.

    Recall that there had been speculations that fuel price might go up to N700, though it was debunked by stakeholders in the petroleum sector.

    Ogun motorists express shock over hike in petrol price

    Similarly, motorists and commuters in Sango-Ota, Ogun, have expressed shock over the new pump prices of petrol, otherwise known as Premium Motor Spirit (PMS), announced by Nigerian National Petroleum Company (NNPCL).

    A correspondent of NAN, who monitored the development around Sango-Ota and its environs, discovered that the few filling stations selling the product had adjusted their pump price.

    The few filling stations like NIPCO, NNPC and Mobil Filling Station, that were selling the product witnessed long queues of vehicles.

    Some of the filling stations were hoarding the product while long queue at various filling stations resulted to traffic gridlocks on some of the major roads in Sango-Ota.

    Mr Bola Martins, a motorist, described the situation as uncalled for, as Nigerians were still struggling with the petrol price that was recently increased.

    “Nigerians are really going through hard times and there is urgent need for the Federal Government to ensure measures that will help to ameliorate the sufferings of the people.” Martins said.

    Mr Jide Onabanjo, a commercial motorist, said that the new price of petrol would be added to transport fares for the people.

    Onabanjo said that this development would further increase the prices of goods and services in the country.

    “We can’t continue like this because we have been pushed to the wall.” he said.

    Onabanjo said that it was unbelievable that the fuel that he bought for N488 per litre at one of the NNPCL stations had gone up to N617 today.

    Mrs Sade Aderanti, a civil servant, said that the new pump prices of petrol would automatically has huge impacts on living standards of Nigerians.

    Aderanti said that she had been on the queue for over three hours and yet had not been able to buy fuel.

    She appealed to Federal Government to expedite action in putting palliative measures in place for civil servants as well as Nigerians, at large, to reduce the untold hardships.

    N617 per litre price of fuel reflection of market realities – NNPC

    Meanwhile, the Nigerian National Petroleum Company L.td., has attributed the increase in the price of Premium Motor Spirit (PMS) also known as petrol to the market realities.

    The company’s Group Chief Executive Officer, Malam Mele Kyari, stated this in an interview with newsmen shortly after a private meeting with the Vice President, Kashim Shettima, at the Presidential Villa, on Tuesday in Abuja.

    Kyari explained that the increase in the price of pms has nothing to do with supply issue, adding that there are robust supply of the product in the country.

    ”I don’t have the details this moment. You know we have the Marketing Wing of the company, they adjust prices depending on the market realities.

    ”And this is the meaning of making sure that the market regulate itself so that prices will go up and sometimes they will come down also and this is really what we are seeing in reality this is how the market works.

    ”There is no supply issue completely when you go to the market you buy the product you come to the market and sale it at prevailing market price there is nothing to do with supply we don’t have supply issues.”

    ”There are robust supply, we have over 32 days supply in the country, that’s not a problem. What I know is that the market forces will regulate the market, prices will go down sometimes and sometime it will go up but there will be stability of supply.

    He assured Nigerians that the policy was the best way for the country going forward.

    ”And I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when market comes.

    ”I know that a number of companies have imported petroleum pms so many of them are online. Market forces have started to play, people have confidence in the market and private sector people are now importing product.

    ”And there is no way they can recover their cost if they cannot take market reflective cost,” Kyari said.

    On his part, Alhaji, Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority doesn’t set price of the product but it was market determine itself.

    ”As a regulator you know I told you back in May we are not going to be setting price the market will determine itself and as you saw back in early June when prices came out it was based on the cost of importation plus other logistics of distribution and of course the profit margin by the importer.

    ”This market is deregulated, is open to all participants. As a mentioned also yesterday (Monday) when I was in Lagos we have about 56 marketing companies that have applied for and obtained license to import.

    ”Out of those 10 of them have indicated to supply within the third quarter which is July, August and September. And out of those already we received some cargoes from some of these Marketers.

    Prudent Energy, AYM Shafa and Emadeb Cargo is arriving tomorrow (Wednesday), So this is like just an encouragement to see that the market is liberated and everyone is free to import so long you are working within the framework especially in tems of quality.”

    He insisted that the authority as a regulator would not put cap on the price because it was not part of those importing the product.

    ”But the pricing as a regulator we are not going to put the cap on the price because we are not part of those importing, we are not a marketing company, we are just a regulator.

    ”So when you say market forces are working basically what it means is that you can see the price of the Crude Oil going up, couple of week ago recovering around 70 dollars per barrel now is around 80 dollars per barrel

    ”So of course the crude price also drive the product price you know because the imposters are importing they are basen it on the course of importation plus other cost element in terms of local distribution.”

  • BREAKING: Fuel price jumps to N617 per litre

    BREAKING: Fuel price jumps to N617 per litre

    The price of Premium Motor Spirit (PMS), popularly known as petrol, has jumped to N617 per litre overnight.

    TheNewsGuru.com (TNG) reports a visit to a fuelling station owned by the Nigerian National Petroleum Corporation (NNPC) Limited in Abuja reveals this development.

    Petrol, which used to sell for N539 per litre has now been adjusted to N617 per litre, a visit to the fuelling station located in the heart of the Federal Capital Territory (FCT) reveals.

    Most fuelling stations in the FCT have followed suit and adjusted their pump prices to between N617 and N620, but AA Rano, Nipco in Jabi are still selling at the old price.

    In Maitama, Wuse, Gwarimpa, Jabi, Wuye and Kubwa areas of the FCT, long queues were observed at petrol stations still selling at the old price.

    A fuel attendant who refused to be named said that they would adjust their pump price before the end of the day.

    A customer who confirmed this development, Mr Emma Uzor, described the development as terrible.

    “We are still battling with the new price and within two months they increased it again. This is not fair to the masses.

    “No information or reasons for the increment, how do they want the poor masses to survive? The salaries have not been increased and food prices have risen.

    “The government should go back to their drawing board and come up with favourable conclusion for the citizens,” Uzor said.

    TNG reports no immediate reason has been given for this hike in fuel price by the authorities.

    However, it has been speculated that the price of petrol will now be dictated by market forces, following the removal of fuel subsidy payments.

    Recall that in May, a day after President Bola Tinubu was sworn into power, NNPC increased the price of fuel from N195 per litre to 537 per litre, nationwide.

    The development was occasioned by Tinubu’s inaugural speech, in which he said fuel subsidies would be removed.