Mixed Reactions Trail Increase in PMS Pump Price to N179

Emma Okonji and Nosa Alekhuogie

Nigerians have continued to react over the recent hike in the price of Premium Motor Spirit (PMS) from N165 to N179 per litre by the Nigerian National Petroleum Corporation (NNPC) Limited.

The Nigeria Labour Congress (NLC) said yesterday that the move by the federal government to suddenly increase the price of petrol was totally out of line.

The Lagos State Chairman of NLC, Ms. Agness Sessi, who spoke yesterday on the Morning Show of ARISE News Channels, the broadcast arm of THISDAY Newspapers, accused the government of increasing the price without consulting the labour unions, stakeholders and Nigerians.

Sessi further stated that the federal government had no idea on how to run the nation and had refused to increase worker’s wages, yet the inflation rate kept increasing on a daily basis.

“The high cost of fuel in the country today has led to increase in transportation, food stuff and every other thing you can think of that is exchanged for money in the country,” she said.

She urged Nigerians to come out to condemn the activities of the present administration and not just leave the fight to NLC alone.

Speaking further, Sessi said that the government refused to heed to the advice of labour to repair the refineries instead of taking the crude product of the country to refine in other countries.

 She also revealed that government had also secretly increased the price of electricity in Nigeria.

However, contrary to the views of Sessi, the National Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Mike Osatuyi, has embraced the new hike in the pump price of petrol, noting that market fundamentals have come into play.

Osatuyi said: “There is no way we can run from it, it’s the beginning of deregulation, which will still come eventually. The new price also varies from state to state, from zone to zone and this is because the costs of transportation across various states are different but there is going to be a marginal difference. We should thank the government for trying to cushion the effect.’’

He added that the development was a new beginning and urged people to have confidence in the new system and not lose faith.

He commended the federal government for agreeing to hands off as it means they are losing power.

Osatuyi said: “I’m hopeful that NNPC Limited is going to yield results and I am happy that we are going to be dealing with a company that doesn’t have any government interference.’’

He defended the hike in petrol price thus: “Diesel has gone up, to run petrol station is expensive, to run generator is expensive. We must start from somewhere and it is not about making profit but simply for cost recovery,”

Sharing his thoughts on NNPC becoming a commercial company, former Group Executive Director, Engineering and Technology at NNPC, Mr. Godswill Ihetu, said the transition was long overdue.

Ihetu said that NNPC would now be a purely commercial entity and not a corporation that served the interests of the government. “We also hope it works not only in Nigeria but also to be able to offer services or play in the international arena,” he said.

He advocated for full privatisation of the NNPC where the government holds minority interest, and where their interference is completely removed.

He said: “The government has bitten the bullet in this case, and I don’t see any changes in the Petroleum Industry Act (PIA) where NNPC is the key beneficiary. There are other things in the PIA that may be a little contentious, which can be reviewed but whatever it is, it must be something that benefits the populace. This is a major step, and it will be difficult to reverse.”