Editorial
No To Petrol Price Hike
The Petroleum Products Marketing Company (PPMC), penultimate Wednesday, announced a new ex-depot price of N151.56 per litre for Premium Motor Spirit (PMS), also known as petrol.
The new price was, however, reported to have been overridden by the N147.67 per litre price later announced by the Nigerian National Petroleum Corporation (NNPC) which claimed that the earlier announcement by its subsidiary was premature and unauthorised.
Following the PPMC’s announcement, petroleum products marketers had warned that the litre price of petrol might rise to between N162 and N165. But with the NNPC’s announcement of a lower ex-depot price, they were said to have adopted a band of N148-N150 per litre pump price.
Before the latest price increase, the ex-depot price of petrol was stated at N138.62 per litre with the Petroleum Products Pricing Regulatory Agency (PPPRA) approving a pump price band of N140.80-N143.80, even though the product retailed largely at N145.
Coming a day after the government announced a similar hike in electricity tariff, many Nigerians were livid and expressed their disappointments while reacting to the development.
President of the Nigeria Labour Congress (NLC), Ayuba Wabba, said that Nigerians and the NLC were shocked by the increase, especially coming at a time when the masses were passing through very precarious times.
“The increase in the price of petroleum (sic) has happened now more than three times in three months. Only yesterday (September 1), they hiked the tariff of electricity. To compound it, they also reduced the interest rate on savings which affected mostly the poor and the vulnerable.
“While rejecting this in the strongest terms, I think Nigerian government is taking Nigerians for granted,” he said.
According to Wabba, NLC’s Central Working Committee is currently discussing the next line of action.
The main opposition party in the country, the Peoples Democratic Party (PDP), was equally swift in demanding a reversal of the petrol price increase in order to avert a national crisis.
In a press statement issued by its National Publicity Secretary, Kola Ologbondiyan, the party warned that “The increase will result in upsurge in costs of goods and services and worsen the biting hardship being faced by Nigerians who are already impoverished and overburdened by APC-imposed high cost of living in the past five years.”
In his reaction, the Acting Director General of the Manufacturers Association of Nigeria (MAN), Ambrose Oruche, said that the poor and small businesses that depend on petrol to power their electricity generators would be hard hit.
Oruche, in an interview with newsmen, advised government to reduce the impact by ensuring that power generation and distribution improve significantly so as to enable people get at least 20 hours of light in a day to reduce their dependence on petrol.
But even with the growing public outcry over the new fuel cost, the Federal Government has continued to justify its action while insisting on a non-reversal.
Minister of State for Petroleum Resources, Chief Timipre Sylva, had, while addressing newsmen a day after the new price announcement, blamed the situation on the government’s inability to raise N1 trillion annually for fuel subsidy payments.
The Tide wishes to join other well-meaning Nigerians in calling on the Federal Government to rethink the current hike in petrol pump price so as to reduce the negative impact on the masses.
We recall the spontaneous mass revolt in 2012 when the President Goodluck Jonathan administration attempted an increase in fuel price which forced the government to quickly rescind its policy. That, we think, is the mark of a listening administration and commends itself to succeeding regimes.
Again, given the ravaging impact of COVID-19 pandemic on Nigerians, the current hikes in the prices of such essential commodities as petrol and electricity appear to be ill-timed and capable of portraying the government as both wicked and insensitive.
We are equally appalled by government’s reluctance to vigorously pursue a rehabilitation of the nation’s four refineries in order to reduce the cost of petroleum products on consumers. No matter how well the government’s argument may sound against petrol subsidy, we still think that its withdrawal should have come after a full repair of the refineries.
Need we also remind government at all levels that the time calls for more pragmatic efforts at diversifying Nigeria’s economy to curtail the dependence on oil revenue for national development. It is sad that not much, if anything, appears to be happening in the solid minerals sector.
Furthermore, we think it is high time the nation’s leaders took serious steps to cut down the cost of governance by checking profligacy and corruption in the system.
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