Amid public outcry over the petrol price hike, labour unions are calling for an immediate reversal and are gearing up for high-stakes negotiations. Get the latest updates on the unfolding situation.
The Federal Government has come under fire from both Organised Labour and other stakeholders for the implementation of a new pump price regime for Premium Motor Spirit by the Nigerian National Petroleum Corporation Limited on Tuesday.
The administration of President Bola Tinubu was urged by major opposition parties in the country to dismiss the management of NNPCL.
As our correspondent kept an eye on the extensive lines at gas stations in the Federal Capital Territory, they noted a surge in fuel prices; with costs now ranging between N900 and N970 per litre.
In response to the recent surge in fuel prices, President Bola Tinubu has been labeled a traitor by the Nigeria Labour Congress.
On Wednesday, the president of NLC, Joe Ajaero released a statement in Abuja which expressed his shock. This was made available to OBASANJONEWS for dissemination.
The Ajaero expressed a profound feeling of betrayal as the Federal Government surreptitiously hikes the PMS pump price. The national minimum wage was agreed upon with the belief that there would be no increase in PMS pump price, despite its insufficiency at N70,000.
The Congress made several demands, including an immediate reversal of the pump price, freedom for imprisoned protesters and a rollback of the 250 percent increase in electricity tariff.
He reassured that the Congress’s relevant bodies would convene soon to make necessary decisions, which will be disclosed publicly.
Okechukwu Nwaguma, the Executive Director of the Rule of Law Accountability and Advocacy Centre, expressed concern about the surge in pump prices labeling it “alarming”. He further stated that there will be a negative impact on living expenses due to heightened rates. This includes an increase in transportation fares as well as food costs which could lead to inflation overall.
Despite the public outcry, he criticized the government for implementing “anti-people” measures and emphasized that addressing the root causes of economic challenges was crucial.
The disparities in access and affordability resulting from significant price variations across diverse regions, with some stations costing as much as N970, particularly affect lower-income households.
Despite widespread dissatisfaction and frustration with the government’s handling of the economy, policy decisions that negatively impact citizens continue to be made without consideration for public outcry. This has left individuals struggling to cope as they bear the full burden without adequate relief measures or support in place.
According to him, the government must prioritize addressing the underlying reasons for economic difficulties and taking steps against corruption. Additionally, they should reduce wastage while demonstrating accountability, empathy towards citizens by leading with an exemplary lifestyle and introduce support programs like subsidies or social welfare schemes that will alleviate their stressors.
According to Juwon Sanyaolu, the National Coordinator of Take It Back Movement and one of the organizers behind #EndBadGovernance protests expressed that their movement was not taken aback by the high cost increase. He attributed this lack of surprise to President’s disregard for demonstrators’ requests made during August 1-10 anti-hunger demonstrations.
We have called for a nationwide protest on October 1 because of President Tinubu’s failure to address our demands during his media broadcast on August 4th. Instead, he chose to gaslight protesters and provided no justification for the repression against them.
Sanyaolu stated that it is no shocker to witness the government or NNPC raising fuel prices, despite protests demanding a reduction back to pre-May 29th, 2023 rates.
He stated that the TIB will once more rally Nigerians to demonstrate on October 1st and suggested that the government had sufficient opportunity to revert pump prices and fulfill their demands before then.
The increased pump price is being outrightly rejected, and Nigerians are prepared to take their resistance to the streets again on October 1st. The government has ample time from now till then to address not just the reversal of this increase but also fulfill all other demands made by protesters.
The Dangote Petroleum Refinery has announced that only the Nigerian National Petroleum Company Limited will be responsible for lifting Premium Motor Spirit, commonly known as petrol, from their plant. As a result, oil marketers are eagerly anticipating the price of this product.
On Tuesday, the Dangote Group’s $20 billion plant in Lagos’ Lekki Free Trade Zone officially introduced PMS to the market. Alhaji Aliko Dangote, President of the company, declared that petrol production has begun at their 650,000-capacity oil refinery.
However, the Independent Petroleum Marketers Association of Nigeria’s dealers have declared that they haven’t been informed about petrol prices from the refinery yet.
According to Ukadike Chinedu, the National Publicity Secretary of IPMAN, they were taken aback when it was categorically stated that NNPC is the only off-taker of the product as no notice has been forwarded regarding its PMS price.
“We had anticipated that Dangote would introduce healthy competition in the market,” he commented. “However, this indicates that NNPC has been relying on Dangote to provide petroleum products all along as it diminished its PMS import.”
“We’re yet to receive information on the price from them, which will undoubtedly impact product pricing due to commodity cost surge at NNPC retail stations,” stated.
The decision by the NNPC to increase the pump price at its stations has led many to speculate that petrol prices may soar up to N1,200 per litre.
In September, the Dangote oil refinery has made public its resolution to provide 25 million litres of PMS every day.
On Tuesday, Nigerians were surprised to observe a difference in the cost of petrol at NNPC gas stations across the country with prices ranging from N600 up to N855/litre or even higher depending on localities.
Our correspondents were informed by sources that retail outlets had been directed to elevate the cost of petrol.
Reports suggest that the suggested cost of petrol differs based on location, with some areas selling it for N900.
NNPC stations in Lagos have raised their price to N855/litre, as confirmed on Tuesday.
An instruction was given to increase the cost of petrol, which declared that NNPC Retail Management sanctioned a rise.
The company’s confession about its difficulty importing fuel due to a $6 billion debt comes only two days prior to this.
Our correspondent contacted Olufemi Soneye, spokesperson for the NNPC, but he declined to comment.
READ ALSO: NNPCL Considering Halting Petrol Imports as Depot Prices Approach N1,000 Per Liter”
Upon being informed over WhatsApp by our correspondent that the declaration had been circulating and reports from NNPC filling stations conveyed a hike in fuel rates, he responded by saying, “I appreciate you bringing this to my attention. As of now, I decline to comment on the issue. Rest assured that if there are any developments pertaining to it, I will keep you updated.”
Depot operators have informed our correspondent that the pump price has been increased by N250.
It has been noticed that certain prominent marketers have increased their fuel prices to approximately 900/litre.
In Onigbongbo, Lagos, the North West filling station sold fuel for N920 per litre whereas in Ibafo, Ogun State at Amuf it was priced at N1,000 per litre.
The abrupt increase in prices created unease among drivers, prompting them to engage in panicked purchasing at gas stations.
Different locations in Lagos experienced traffic gridlocks due to the long queues at petrol stations selling fuel, which were only a few.
Additionally, it was noticed that several gas stations were closed for business and numerous marketers chose not to purchase fuel.
As of 2pm on Tuesday, an Apapa-based representative from a petroleum corporation confirmed to our correspondent that there were no marketers present at their depot for petrol loading.
He characterized this as uncommon, affirming that numerous marketers may find it difficult to cope with the elevated price.
In the past, NNPC would sell petrol to large-scale distributors at a rate lower than N600/litre. Independent dealers, on the other hand, purchased from private depots for roughly N900.
Although concerns exist regarding potential hardships for private depots due to the new pricing system, black market traders were able to sell the product at N2,000 per litre in Lagos on Tuesday.
One of our correspondents in Victoria Island, Lagos spoke with a few illegal profiteers who proposed selling five litres of petrol for N15,000. Despite bargaining attempts starting at N8,000, they were steadfast on not settling below the minimum price of N10,000.
Twenty-five million liters.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s announcement made on Tuesday, in September, the Dangote oil refinery will provide a grand total of 25 million litres petrol per day for distribution throughout Nigeria.
Starting October, the NMDPRA predicts that this will increase to 30 million litres.
The NMDPRA held a brief meeting with the NNPC to establish an agreement on supplying local crude to the refinery.
NNPCL and Dangote Refinery reached an agreement to commence the sale and supply of crude oil in local currency at NMDPRA headquarters in Abuja.
According to the NMDPRA, starting this September, the refinery is ready to provide an initial supply of 25 million litres of PMS for domestic use. This amount will further increase and reach up to 30 million litres per day by October 2024 as stated on its X platform.
Petrol production at the 650,000-capacity oil refinery was formally announced on Tuesday by Alhaji Aliko Dangote, who is President of the Dangote Group.
The refinery address by Dangote highlights the impact on Nigeria’s energy landscape due to a shift in petrol supply.
