Barely three months after the Federal Government turned down the recommendation by the Nigeria Governors’ Forum for an increase in the price of Premium Motor Spirit, popularly called petrol, the Federal Government again on Friday reiterated its stance, insisting that no decision on the adjustment of petrol price would be reached until the ongoing negotiations with the organised labour were concluded.

The Federal Government had first, on May 21, rejected the governors’ recommendation of shooting petrol price up to between N380 and N408.5 per litre and removing fuel subsidy.

The governors’ advice was based on the report of its committee chaired by the Kaduna State Governor, Mallam Nasir El-Rufai, seeking the full deregulation of the oil sector.

El-Rufai, while presenting the report of his committee to the NGF, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighbouring African countries were the beneficiaries.

But the Minister of State for Petroleum Resources, Chief Timipre Sylva, in a statement, said the current petrol price of between N162 and N165 per litre would stay.

Sylva said the current price would be retained until the ongoing negotiations with the organised labour were concluded.

He said, “Once again, it has become necessary to assure Nigerians that despite the huge burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.

“The current price of petrol will be retained in the month of June until the ongoing engagement with organised labour is concluded.

“This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors’ Forum to increase the pump price of petrol.”

Sylva also asked oil marketers not to engage in any activity that could jeopardise the “seamless” supply and distribution system of the commodity.

Despite the Federal Government’s initial stance, oil marketers under the aegis of Petroleum Products Retail Outlets Owners Association of Nigeria, on Friday, demanded an immediate end to fuel subsidy in line with the state governors’ recommendation of May.

The President of PETROAN, Dr Billy Gillis-Harry, insisted that oil marketers’ position that fuel subsidy should be stopped remained.

“When it (fuel subsidy) is stopped, the prices of petroleum products will be determined by market forces and this will create competition and lead to an increase in product availability,” he argued.

Gillis-Harry asked the Federal Government to listen to the governors’ call, especially now that the country was grappling with funding challenges.

However, the Federal Government reiterated its stance of May, stating that no decision on the adjustment of petrol price would be reached until the ongoing negotiations with the organised labour were concluded.

The Special Assistant on Media to the Minister of State for Petroleum Resources, Garba-Deen Muhammad, stated that he would re-echo the position of his boss, Sylva, who had earlier stated the position of the Federal Government on the matter.

Muhammad said people were free to make analyses and recommendations but stressed that the government’s position on petrol price had not changed.

He said, “The truth is that the key component for us to make the decision is basically for us to have a consensus with labour. So regardless of what the governors or anybody else is saying, labour is the key partner in this project.

“The negotiations with labour officials are ongoing. A decision will not be reached until the negotiations are over. So anybody can say what they want.”

He added, “The fact is that the labour represents the Nigerian people and the government is working with the Nigerian people. So it is a cardinal objective that the labour is carried along.”

Asked when the negotiations would possibly be concluded, Muhammad stated that the deadline was not completely dependent on the Federal Government.

“People can make their analyses and arrive at whatever proposals, but at the end of the day, a consensus has to be reached and in that consensus, the labour is a major voice and key partner,” he said.

Sylva had also during a recent briefing stated that the government would not discontinue petrol subsidy until its negotiations with the labour were over.

Although Sylva admitted that the burden of petrol subsidy was humongous, he insisted that negotiations with labour were a cardinal factor, stressing that the parties in the talks would soon resolve the concerns.

He said, “Of course, everybody would have their perspective, but from where I sit, I believe that subsidy removal is the best thing for Nigeria, not just for the industry. Discussions with the stakeholders are still ongoing.

“I’ll also bring to your attention that when the President assents to the Petroleum Industry Bill, subsidy issues will become a matter of law because it is already in the PIB that petroleum products will be sold at market-determined prices.”

The Petroleum Industry Bill was passed by the 9th National Assembly on July 1 after over a decade of legislative rigmarole.

The PIB contains five chapters, including governance and institutions, administration, host communities development, petroleum industry fiscal framework and miscellaneous provisions in 319 clauses and 8 schedules.

The National Assembly had in 2018 passed a harmonised version of the bill, but the President, Major General Muhammadu Buhari (retd), refused assent to it due to “legal and constitutional reasons.”

As of March 2021, fuel subsidy was costing the government up to N120bn per month based on the average daily consumption of around 60 million litres of petrol, according to the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari.

Also, according to an analysis by Reuters in April, subsidy cost around N10tn between 2006-2018 – more than the budget of any of the health, education or defence sector.

When contacted on Friday, the Spokesperson for the NGF, Abdulrazaque Bello-Barkindo, said, “I cannot comment on any issue that has not been collectively discussed and agreed upon by governors.”

Oil marketers back governors, renew call for fuel subsidy removal

Meanwhile, oil marketers including the Independent Petroleum Marketers Association of Nigeria on Friday backed the governors by calling for the complete removal of fuel subsidy.

The oil marketers stated that the rise in the landing cost of petrol had further highlighted the need to put a stop to petrol subsidy.

On Monday, The PUNCH reported that the landing cost of petrol imported into Nigeria had increased to a new high of N249.42 per litre on the back of high global crude oil prices.

The further rise in the landing cost of petrol means increased subsidy as the pump price of the product remains between N162 and N165 per litre.

Speaking with Saturday PUNCH, the National Public Relations Officer of IPMAN, Chief Chinedu Ukadike, insisted that petrol price should be determined by market forces.

He said, “In a deregulated sector where subsidy is completely removed, the forces of demand and supply drive the market. There are no institutions that determine the prices of petroleum products in such a deregulated sector or fix the price of the products.

“It is important that the forces of demand and supply should drive the prices of petroleum products in the country, whereby you can be able to buy products from your local refinery and go to your local filling station and sell it.”

Ukadike, however, said the subsidy should be removed in a way that it would not inflict hardship on the consumers.

“IPMAN supports the removal of subsidy, but this should be based on the provisions of the PIB so that marketers and consumers will not suffer hardship,” he said.

“Also, in doing this, we should ensure indigenous production of refined products,” Ukadike added.

The Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, had also recently said the country might end up spending N2tn on petrol subsidy this year.

Ogbechie, who spoke at the Nigeria History Series of the Centre for Values in Leadership, lamented the lack of deregulation in the downstream sector.

He said, “The biggest elephant in the room today as far as the downstream is concerned is the failure, so to speak, of the government to deregulate the downstream. Fixing the prices at which petroleum products are sold, I believe, is very seriously harmful to this economy.

“Petrol is being sold for between N162 and N165 per litre. I believe that petrol is being subsidised with at least N100 per litre. If you look at the national consumption of anything between 60 and 80 million litres per day, we are spending about N8bn every day just to subsidise one product.”

Petrol subsidy, which was removed in March 2020, resurfaced earlier this year as the government has left the pump price of the product unchanged since last December despite the increase in global oil prices.

Just as the oil marketers, the state-owned oil company, NNPC, had repeatedly kicked against the continuation of subsidy, but stated that it was awaiting the outcome of negotiations between the government and labour.

FG must divest from refineries after rehabilitation, PENGASSAN insists

Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria has said it will not support the sale of the nation’s refineries.

But the union added that it would insist that the Federal Government divested its interests and allows the private sector to run them after their rehabilitation.

Speaking at a security awareness programme organised by the union in Abuja on Friday, the PENGASSAN National President, Festus Osifo, stated that his association would carry out advocacy for private sector management of the refineries.

He stated that the government could also adopt the public-private model adopted for the Nigeria Liquified Natural Gas Ltd, in which the Federal Government holds minority 49 per cent shares against the 51 per cent by the private sector.

Osifo said, “PENGASSAN has never advocated that refineries be sold. What we have always advocated is that there should be a public-private partnership in such a way that the government will not be involved in the day-to-day running of the refineries.

“Why is the Federal Government not exploring the possibility of adopting the LNG model where the government holds minority 49 per cent while the private sector will take 51 per cent? That model has worked very well.”

Speaking on the ongoing rehabilitation of the refineries, he stated, “PENGASSAN welcomes the rehabilitation of the refineries. Our advocacy, once the rehabilitation work is complete, will be to call on the government to divest from the refineries and allow the private sector to run all of them.

“If we were to sell the refineries the way they are, they will be sold as scraps. If the government fixes the refineries and then divests, the money that government will get will be reasonable.”

He disclosed that while PENGASSAN had never opposed deregulation, it would not support a deregulation policy hinged on importation.

“That is why our position to support the rehabilitation of the refineries is justified. Nigeria will be ripe for full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the efficient private sector.

“With the refineries coming on stream in the next few months and with the Dangote refinery coming on board as well, Nigeria will soon be self-sufficient in refined petroleum products,” Osifo said.

Osifo, a staff member of Total Nigeria Plc, argued that the Petroleum Industry Bill could be amended to reflect the five per cent demanded by the oil-producing communities.

He added, “For us in PENGASSAN, three per cent of operating expenditure is a good place to start. Let the bill be signed to end the uncertainty that shrouded the petroleum industry. The host communities can then seek an amendment.

“In my rough estimation gotten from the expenditure of the oil companies in the last one year, three per cent translates to about $45m (N18.5bn). The most important thing is how the fund will be administered.”

https://punchng.com/fuel-price-again-fg-rejects-govs-n380-litre-proposal/

Please accept it you dangerous mannequin hiding inside the Rock. Move price of petrol to 400 UAR Naira. Oloriburuku Oloshi Somebody. This will be the final straw that will break your back. Nonsensical nonsense without ingredients. Ogun go kill una.

Why not just approximate it to N500 per litre, very evil minded people??

Something must lead to complete breakdown of laws and order in Nigeria.

Subsidy must be totally removed, not because of any stupid market forces but because Nigeria as a major oil exporting country has no business importing fuel, talkless of subsidizing the importation of fuel. Are we not supposed to refine enough crude oil for local utilization before exporting the remaining crude oil to earn foreign exchange?

So na the governors that have been demanding for the increase in price fuel?

What's their interest in increasing the fuel price?

Monogamy:
So na the governors that have been demanding for the increase in price fuel?

What's their interest in increasing the fuel price?

More money to embezzle before Ogun and Sango finally strike them dead.

It will not be well with those who are actually behind the increment. Why are they after to see the masses suffer?

Monogamy:
So na the governors that have been demanding for the increase in price fuel?

What's their interest in increasing the fuel price?

This is a propaganda article for blame-shifting.

Buhari is the person who said he doesn't know what subsidy is.
He is the minister of Petroleum.
His ministry said they're are removing fuel subsidy (announced several times).
After removal of subsidy, the prices shoot up. It might even reach 1000 naira per liter depending on dollar so wetin concern governors for here?

Una dey mad!

Who go pay 400 for fuel? Mtchew rubbish....

I see zombies crying, this I have seen

Monogamy:
So na the governors that have been demanding for the increase in price fuel?

What's their interest in increasing the fuel price?

Monogamy:
So na the governors that have been demanding for the increase in price fuel?

What's their interest in increasing the fuel price?

This is your 26th comment now. How then do you now do something productive this morning? How then do you become wise when you refuse to use your time to invest in yourself. This is the thing northerners do too, they don't believe in investing in human capital nor do they understand the concept of human development
Hey think Allah develops you by magic .

Bros use your time and read more, talk less , invest in developing yourself

If your leaders stumble, help them to their feet.
If they falter, correct them.
If your leaders are of no use, POLEAXE them.
These GOVERNORS ARE OF NO USE, IT IS HIGH TIME WE POLEAXED THEM.

I thought that the right Topic should have been "Governor's reject FG" proposal to sell PMS at #350.....#500.

Don't even know who to trust again

These our leaders are evil and selfish people. They have no regards for the masses.

Their policies make the poor poorer. What's in this country for a common man? When prices of fuel increases this guys will get fuel for free, everything they consume is paid by the masses that is why they can make decisions without considering the effect on the common man.

They will increase the price of fuel and still embezzle it. If I use mistake become President for this country, I will make sure I kill all of them.

My only anger is with the south south region. Nigeria solely lives on the proceeds of Oil from south south yet we are still living in abject poverty. LAst Last the south south would have fought for independence. How can we be this stupid?

You will think they really care about the well-being of Nigerians but they are more concerned about their pocket. The Governors are struggling for increased Federal Allocation while the Federal Government is not ready to let go of her Cash cow.

Naira devaluation is aready a secret tax, inflation, toll gate, gas vat, stagnant minimum wages now fuel increase and majority of nigerian are jobless some receiving half salary someone receiving minimum wages 20k

The government refuse to merged agencies and cut their luxury cost

One nigeria, bandits,

Black man leadership especially nigerians they claim the white oppresed and colonized them, when given chances they oppress and bully their people.

Nigerians are animals for voting in lawless leader s

Y0x

Hardened criminals. Them dey buy fuel/PMS with there money or state money?

jahsharon:



More money to embezzle before Ogun and Sango finally strike them dead.

Ogun and Sango have actually been doing partiality... What are they waiting for now

I think this is old news. Why bringing it to the fp
Both El rufai and Bubu have been on medical tourism for some time now. And Bubu just came bk yesterday

Let them make it N500/lit...







I don't care

Eventually, we would have to accept a removal of fuel subsidy. And the increase in prices. Because oil prices have not been as high as we need it to be to fund the subsidy.

And because for refineries to work properly, they need to sell product at a profit. We have been selling fuel at under the cost price of production for decades, and thus the refineries have not been run profitably,meaning they have all run down.

Nigerians have to be realistic. We had a chance to be realistic in 2011, but we decided that cheap fuel prices was worth sacrificing our economic stability, and the development of our petroleum industry for....

Before you abuse me...Niger has a functioning refinery, and they sell fuel at N377. It is because they sell fuel at such a high price that they can afford to keep their refinery working well. Unlike us that import fuel at N260 and above, and sell it at N162, and pay a subsidy that cannot adequately cover for the loss...and we are importing because we kept on selling fuel at a price below its refining cost for decades...meaning no cash for refiniery repairs and new refinereis.

Those governors are mad

This is only an indication that it'll soon be increased. Once you see them mumbling about the increment, they're about to do it.

FG are as evil as the state government, if not worse.

How..

Please raise price.

We when no get motor.. Nothing concern us

wen hell break loose, they will run n hide

God will punish all those governors.

Dangote biko finish your refinery before these people ruin Nigeria patapata! They said the suffering is not enough!

my anger in all this is that salaries of some people are still not increases, everything is adding price except salaries, even the salaries, they are still owing a lot.