Anger, misgivings among Nigerians  trail increase in  fuel pump price

By Chinazor Megbolu    |   

The recent increase in the pump price of petrol by the Petroleum Products Pricing Regulatory Agency (PPPRA), a Federal Government of Nigeria agency, has continued to generate misgivings and anger among Nigerians, especially the pauperized masses whose dwindling economic fortunes are further compounded by the ravaging Covid-19 pandemic.

Reactions from people showed that the price increase was unpopular and regrettable especially now that many of them are still battling to survive the economic hardship caused by the Covid-19 pandemic.

According to the PPPRA; “please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations, based on the existing price regime.

“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020”.

A commercial motorcyclist, Mr John Okoi based Egan, a suburb of Lagos State said that the reversal of the recent reduction to its former price wasn’t what government should have done but instead concentrate on agenda that would cushion the effects of present economic situation.

He further said that rather than increasing the pump price of petrol, government needed to alleviate the suffering of the masses with incentives to cushion the effects of the dreaded pandemic.

Okoi added that the announcement of the new pump price was ill-timed and insensitive.

An Agronomist, Mr. Ovie George,  urged the Federal Government to ensure that the refineries in the country are put to good use towards reducing the cost for consumers.

He noted that the attitude of filling stations to the adjustment of the petrol price is always worrisome and advised the regulatory agencies to rise to the occasion of price implementation and compliance by filling stations so as to benefit the consumers.

Since the increase, most filling stations had effected the new pump price of N143 as announced by the PPPRA.

Meanwhile, the foremost opposition party, the People’s Democratic Party (PDP) didn’t hide its misgivings on the announcement of the pump price increase.

The party joined other stakeholders to lambast the Federal Government over increase.

In a statement issued by PDP National Publicity Secretary, Mr. Kola Ologbondiyan, PDP frowned at the increment, stating it’s a punishment on the citizens given the prevailing economic situation in the country.

The PDP also noted that the increase, despite the decline in the price of crude oil in the international market, was unjustifiable and exposes the insincerity of the ruling party.

The statement disclosed that by increasing the price of fuel at a time Nigerians are confronted with economic and social trauma of the Covid-19 pandemic, the President Muhammadu Buhari-led government has shown a total lack of human feelings to the plights of the citizens.

According to the statement; “our party challenges the APC-led Federal Government to present to Nigerians, the indices and parameters it used to determine the price increase, which obviously cannot be in tandem with the prevalent situation in the global industry.

“The actions of the APC administration have continued to confirm that the party has never been pro-poor but only relishes in imposing hardship and heavy taxes on already impoverished Nigerians, while running an over-bloated government through which resources meant for the welfare of Nigerians are flittered by corrupt officials and the cabal in the Presidency.

“Under the APC, Nigerians have been subjected to untold hardship, which is worsened by excruciating taxes, including a 7.5 per cent Value Added Tax (VAT) on essential commodities and services, increased electricity tariff, obnoxious Stamp Duty and other levies on bank transactions.

“It is shocking that the APC government has continued to impose more burdens that have made life unbearable to our citizens, many of whom have lost their means of livelihood due to the misrule of the APC.

“President Buhari told the world that the number of poor people will triple following the adverse impact of Covid-19 pandemic; yet his administration, which has turned our nation into the poverty capital of the world, instead of seeking ways to stimulate the economy, is worsening the situation with an increase in fuel price.

“What Nigerians expect of the Buhari Presidency at this critical time is to save resources by immediately cutting the size of its over-bloated government, recover the over N14 trillion oil money stolen under its watch and channel the funds towards the wellbeing of Nigerians.

“Our party, therefore, charges the APC and its administration to immediately reverse the pump price of fuel to a price not exceeding N90 per liter, given the prevailing templates in the price of crude oil in the international market”.

Furthermore, the organised Labour wasn’t left out of the bashing. Labour rejected the new pump price raised from N121 to N143.80 per litre by the Federal Government.

 They, however, urged the government for its reversal with immediate effect.

Reacting to the increase, Nigeria Labour Congress (NLC) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said they received news of the increase with rude shock and vowed to resist a policy they described as inhuman.

The President, NLC, Comrade Ayuba Wabba, in his address said: “There is no way Nigerians would accept a situation where we are charged international rates for a product Nigeria is ranked sixth largest producer in the world.

“We demand that the Federal Government revert to the old price of petroleum especially given the fact that price of crude oil in the international market has only slightly increased from the previous price before the so-called downward review was announced two months ago”.

He pointed out that labour is also demanding that all the four national petroleum refineries be fixed without any further delay, adding that Nigerian workers want to be appraised of the timeline set by government to ensure that this is effectively done.

Moreover, the Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Adetunji Oyebanji, responded to the increase by stating that it was not out of place for marketers to be swift in adjusting their pump prices.

He noted that the more marketers delay, the more risk they face doing business because after selling their stock, which they bought at the old rate, they would need more resources to buy at the new higher price.

A survey of filling stations across the Lagos metropolis showed that marketers have immediately adjusted their pumps in compliance with the PPPRA directive.

Some motorists were shocked at the increase and the swiftness with which filling stations quickly complied with the order.

They also added that were it to be a price reduction; the implementation could have taken more than a week to reflect the new price.

An Economist and Lecturer, Mr. Ayodeji Ojo quoted a portion of the Circular which announced the price hike July 1, 2020.

According to him; “the federal government had a few months ago announced its plan to stop the subsidy payment regime as they said the downstream of the oil and gas industry will be fully deregulated.

 “The government said that the prices of all petroleum products, which includes fuel would be fully determined by market forces, following the removal of the existing cap on fuel prices.

“The new price in July represents an over N20 per litre increase when compared to the price last month.

“My take in all of this, is that subsidy removal is a welcome idea. It becomes an open market where others can come to operate and could force the prices further down. But the timing is wrong. Not in a time we are, where so much hardship is out there”.

To Mr. Augustine Maduemezia, an importer and dealer in musical equipment, said that government wasn’t being considerate about the plight of the citizenry.

“It’s like our government is not considerate. The poor masses are battling with high cost of every thing like; food stuffs, transportation, lack of water, no money, no steady electricity and now fuel increase.

“What should we do? How do they want us to survive? My brother, it’s only God,” he said.

From all indications,  it’s obvious that the masses, especially the average and downtrodden, are at the receiving end of the pump price increase.

The federal government and its agencies should try as much as possible to carry people along by executing policies that would alleviate the suffering of the citizenry.