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| Fuel dispensing |
Fuel marketers in the
country have called for the removal of the cap on the pump price of fuel.
Media
report continues:
They
said yesterday that the ₦145 per litre ceiling was unsustainable in view of the
falling value of the naira against the U.S dollar.
The
marketers expressed support over the decision reached at a gathering of former
Group Managing Directors of the Nigerian National Petroleum Corporation (NNPC)
on the removal of the price cap on petrol in the country in Abuja on Saturday.
NNPC’s
present and past GMDs, as well as the Minister of State for Petroleum
Resources, Dr. Ibe Kachikwu, at the end of their one-day meeting noted that the
₦145 per litre fuel price did not reflect the price-determining components of
the commodity and the fluctuations of the foreign exchange rate.
Sources
close to the major oil marketers association told our correspondents yesterday
that they were yet to start importing fuel since the fuel price had been pegged
at ₦145/litre.
They
said current exchange rate of the naira to the dollar made it difficult for
importers to import fuel and sell at ₦145 per litre.
The
sources added that the marketers were, however, not suggesting that
the pump price should go up.
According
to a source, “The skyrocketing exchange rate in the country makes it impossible
for marketers to import and sell fuel at the price cap of ₦145 per litre.”
Executive
Secretary of Depot and Petroleum Products Marketers Association of Nigeria
(DAPPMA), Mr Femi Adewole, told our correspondent that his members had to
source the product from the NNPC because they could not access forex to import
it.
He wondered why the price of fuel in the country had not been re-modulated since last May when it was fixed for ₦145 per litre against the ₦280 exchange rate to a dollar then.
He wondered why the price of fuel in the country had not been re-modulated since last May when it was fixed for ₦145 per litre against the ₦280 exchange rate to a dollar then.
A
member of the Independent Petroleum Marketers Association of Nigeria (IPMAN)
Press Committee, Barrister Dibu Aderibigbe, said marketers had warned at the
inception that fixing a cap price for PMS would not solve the problem.
“And
now what we have said is coming to reality,” Aderigbigbe said.
“The
official rate today is about ₦315 or so. So, from ₦200 to ₦315/dollar and if we
have to recover cost, can we still continue to sell at ₦145? I think it is
simple based on the forex crisis unless there is a magic maybe they want to
start giving importers special rate at ₦200/dollar and you don’t run economy
that way,” he added.
The
meeting of the forum on Saturday expressed reservations about the ceiling
placed on the price at which the Pipelines and Products Marketing Company, an
NNPC subsidiary, sells premium motor spirit to marketers.
The
meeting which reviewed the status of the corporation and the nation’s oil &
gas Industry, observed that the current ceiling on price of PMS was not in
conformity with the liberalization policy of the government and current
realities in the foreign exchange market.
The forum however noted, “That the PMS price cap of ₦145/litre is not congruent with the liberalization policy especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges etc remaining uncapped.”
The forum however noted, “That the PMS price cap of ₦145/litre is not congruent with the liberalization policy especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges etc remaining uncapped.”
The
forum advised that the existing refineries be rejuvenated using the Original
Equipment Manufacturers (OEMs). It also said that the refineries must be restructured
to operate as an incorporated joint ventures (IJV) similar to the Nigerian
Liquefied Natural Gas (NLNG) model with the participation of credible partners
with requisite technical and financial capabilities.
The
meeting commended “NNPC for resolving the fuel supply crisis but urged the
corporation to ensure sustenance of seamless supply of petroleum products
nationwide.”
It advised that funding of JV Operations should be the first line charge to oil revenue to ensure sustainable production and reserve growth.
It advised that funding of JV Operations should be the first line charge to oil revenue to ensure sustainable production and reserve growth.
Earlier
at the meeting, the GMD, Dr. Maikanti Kacalla Baru, had presented his 12
Business Focus Areas towards putting the corporation on the path of growth and
profitability before the forum went into the brainstorming session on the
declining production level and its attendant consequences on the environment
and the nation’s revenue.
The forum reviewed the security challenges threatening Oil & Gas production and damaging the Niger Delta environment and urged the government to engage the various host communities as well as established social and traditional structures to develop an actionable partnership framework toward finding a lasting solution to the present unrest.
The forum reviewed the security challenges threatening Oil & Gas production and damaging the Niger Delta environment and urged the government to engage the various host communities as well as established social and traditional structures to develop an actionable partnership framework toward finding a lasting solution to the present unrest.
Nigerians Vow To Fight Fuel Price Hike
The
Nigeria Labour Congress, Trade Union Congress, Afenifere, former federal
lawmakers, security experts and rights activists, on Saturday vowed to resist
any attempt by the President Muhammadu Buhari’s government to further increase
fuel price.
They
stated this in separate interviews with SUNDAY PUNCH against the background
that former and present bosses of the Nigerian National Petroleum Corporation,
expressed fears that the current pump price of ₦145 per litre, was no longer
feasible.
Past
and present Group Managing Directors of the NNPC, unanimously declared on Saturday
that the current ₦145 per litre price of fuel was no longer realistic.
They
said the amount does not correspond with the price determining components of
the commodity and the fluctuations of the foreign exchange rate.
They
stated this after a one-day meeting they held with the Minister of State for
Petroleum Resources, Dr. Ibe Kachikwu, in Abuja.
The
NNPC in its statement said, “They (the GMDs) noted that the petrol price of ₦145/litre
is not congruent with the liberalisation policy especially with the foreign
exchange rate and other price determining components such as crude cost,
Nigerian Ports Authority charges, etc remaining uncapped.”
The
declaration of the NNPC present and past bosses confirmed an exclusive report
by SUNDAY PUNCH on August 7, 2016, in which oil marketers revealed
that the actual or real cost of petrol was ₦151.87 when all the pricing
components are adequately captured.
The
marketers had stated that they were struggling to maintain petrol price at ₦145
per litre because of the stiff competition in the downstream oil sector, but
stressed that the practice was not sustainable.
The
GMDs, however, commended the NNPC for resolving the fuel supply crisis and
urged the corporation to come up with measures that will ensure sustenance of seamless
supply of petroleum products nationwide.
According
to the corporation, the GMDs expressed concerns about the declining crude oil
production level and its consequences on the environment and the nation’s
revenue.
They
further agreed that if the current situation remains unchecked, it could lead
to the crippling of the corporation and the nation’s oil and gas sector which
is the mainstay of the Nigerian economy.
However,
the Nigeria Labour Congress on Saturday warned the President Muhammadu Buhari
administration not to contemplate any further increase in the pump price of
petroleum products in the country
The
General Secretary of the NLC, Dr. Peter Ozo-Eson, who stated this in an
interview with SUNDAY PUNCH, said Nigerians would not accept further fuel
price increment.
Ozo-Eson
had warned the government earlier this week against increasing the pump price
of petroleum products in the country.
Ozo-Eson
said that it was also up to Nigerians to decide whether to allow being
subjected to the incessant increase in the fuel pump price or not.
He
said, “We had given a warning before that Nigerians cannot take any further
increase, that they shouldn’t do it.
“That
remains our position, and if they go ahead and do it, it is up to Nigerians to
say how they want to respond to it. But we remain opposed to any new increase
in the price of petroleum product.”
Also
the President of the Trade Union Congress, Bala Kaigama, warned government not
to take Nigerians for granted because there was no palliative in place.
He
said, “Nigerians have been taken for granted a couple of times by the Buhari’s
government but things would be different this time around. We would fight this
modern day slavery.”
The
National Publicity Secretary of Afenifere, Yinka Odumakin, said the masses
would resist the hike. “There is a limit to which you can tax poverty, it
is only prosperity you can continue to make demands on.
“If
you are unable to provide an enabling environment for people to improve their
lives and you continue to tax them wantonly, you risk the rage of the poor,” he
said.
On
his part, a Second Republic lawmaker, Junaid. Mohammed said, “I am highly
suspicious about NNPC GMD’s coming up with this suggestion now. Are they saying
Nigerians have not suffered enough?”
The
Executive Director of the Civil Society Legislative and Advocacy Centre:
Awual Musa Rafsanjani, said, the Buhari government was taking Nigerians for
granted. “This government must not take Nigerians for granted,” he said.
Also a security consultant, Ben Okezie, said the government was pushing Nigerians to the brink with the planned fuel hike, noting that Buhari may be forced out of power, if he was not careful.
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