The Nigeria Labour Congress (NLC) has condemned the recent increase in Premium Motor Spirit (PMS) price.
NLC officials said the hike is insensitive to the plight of Nigerians. But oil marketers have denied being responsible for the price increase, blaming external factors.
Dangote Petroleum Refinery said the rising cost of crude oil and not their operations was responsible for the price adjustment.
On Friday, petrol price rose to between N1,050 and N1,150 per litre, with reports saying it was due to depot owners and refinery cost adjustments. Dealers warned that fuel price will continue to go up as global crude oil price rises.
Deputy President of NLC Political Commission, Professor Theophilus Ndubuaku, faulted the government’s approach saying workers, private sector and students should have been involved in the discussions before such decisions are taken.
He said the increase in petrol price will worsen inflation, weaken the naira and increase living cost.
Ndubuaku also called for more inclusive governance, citing former President Olusegun Obasanjo’s habit of holding regular meetings with stakeholders on economic issues. He urged the present administration to adopt the same approach, saying policies affecting the masses should involve representatives from different sectors.
Meanwhile, Sessi Funmi, Lagos State NLC Chairperson, accused oil marketers of exploiting Nigerians. She said marketers manipulate petrol price to their advantage and undermine government efforts to stabilize the sector.
Funmi praised President Bola Tinubu’s administration for reviving refineries in Port Harcourt and Warri and faulted marketers for frustrating those efforts.
Funmi called for direct government agreement with suppliers to eliminate middlemen and fair pricing. She said marketers have been benefiting from subsidy without fulfilling their obligations and stressed the need for accountability in the petroleum sector.
Dangote Refinery Not Responsible for Price Hike
Dangote Petroleum Refinery has explained its pricing strategy saying it is committed to making fuel affordable for Nigerians. The refinery, in partnership with MRS, Ardova and Heyden, has set a uniform retail price of N970 per litre across the country.
Despite the rise in crude oil price, Dangote Refinery absorbed 50% of the cost to protect consumers from excessive price increase.
The refinery’s spokesperson, Anthony Chiejina, restated their commitment to transparency and affordability. He said the refinery absorbed 50% of the international price increase, preventing price from getting to N1,150 per litre. To promote accountability, the refinery will publish weekly price structure.
Chiejina also praised the Naira-for-Crude initiative by President Tinubu which ensures Nigerians have constant access to quality fuel while cushioning the effect of global price fluctuations.
Marketers Give Reasons
Marketers have also denied being responsible, saying it’s market forces. They pointed out the impact of international crude oil prices and exchange rate volatility on PMS pricing.
As of Sunday, global crude oil prices were up, Nigeria’s Brass River crude was selling at $83.69 per barrel.
Retailers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are telling Nigerians not to blame them for the price instability.
Dr. Billy Gillis-Harry, President of PETROAN said market forces now determine petrol prices in the deregulated system. He said price changes reflect global market dynamics and not the whims of marketers.
Hammed Fashola, Vice Chairman of Independent Petroleum Marketers Association of Nigeria said competition in the downstream sector prevents marketers from pricing too high. He said many marketers lost money when prices were reduced suddenly in December and advised filling station owners to plan ahead to avoid financial losses.