Emmanuel Addeh, Onyebuchi Ezigbo, Sunday Aborisade in Abuja, Peter Uzoho in Lagos and John Shiklam in Kaduna, Ahmed Sorondinki in Kano, Yinka Kolawole in Osogbo and Blessing Ibunge in Port Harcourt.......KINDLY READ THE FULL STORY HERE👈
The rising price of petrol following the full deregulation of the downstream oil sector continued to generate reactions yesterday, with the Senate President, Godswill Akpabio, urging Nigerians to cut back on the number of cars they own.
The statement by the former Akwa Ibom State governor appeared largely paradoxical as it is no news that it is the practice of Nigeria’s elite, the top federal lawmaker not exempted, to own tens of cars in their garages scattered all over the nation and even abroad.
But with the full deregulation of the downstream segment of the petroleum sector this week, independent petrol marketers yesterday set their prices at between N1,200 to N1,400 in some parts of the country, THISDAY checks showed.
The soaring price of the product continued as the Senate yesterday assured Nigerians that it would assess the current increment in the prices of fuel in the country and intervene only if necessary.
In the same vein, yesterday, the leadership of the Trade Union Congress (TUC) asked the federal government to consider subsidising crude oil supply to local refineries as well as special foreign exchange rates for domestic oil supply.
In several parts of Nigeria yesterday, including Abuja, Port Harcourt, Warri, Oshogbo, Kano and Kaduna, petrol was sold far beyond the new threshold the Nigerian National Petroleum Company Limited (NNPC) set for its customers on Wednesday.
The state-owned oil company had increased the official pump price of petrol in its retail outlets to N1,030 per litre in Abuja from the N897 it announced on September 3 and from N855 to N998 in Lagos.
This meant that in the less than 17 months of the current administration, the price of the fuel has risen by over 430 per cent from May 29 when President Bola Tinubu took over the leadership of Nigeria.
But the Senate President, Godswill Akpabio, who advised Nigerians to do away with some of their vehicles over skyrocketing fuel prices, gave the assurance that the lawmakers would step in only if needed.
Akpabio, who spoke while addressing journalists after the inauguration of a remodelled press centre in the National Assembly complex, explained that the nation’s oil and gas sector had been fully deregulated hence market forces would henceforth determine the price of fuel.
He urged Nigerians to embark on belt tightening measures pending when plans being put in place to increase the supply of the products across the country materialise.
He said: “On the recent increase in pump price of petroleum, I haven’t actually assessed what is happening in terms of pump price increase, but it’s not pump price increase, it’s deregulation.
“If you are taking away the consumer subsidy and then you want people to pay for the actual price of what we consume, it means if you have five cars you will now use one or two.
“It simply means that you are going to stop the idea of subsidy in order to make sure that the monies are used for other things. So I don’t expect any increase in pump price.
“I will expect the market forces to determine prices. I would expect that now that the NNPC is no longer going to bring petroleum products into the country, it means those who have the capacity will bring it and the more the products are available, the cheaper the price.
“So at the beginning, it may seem to be an increase in pump price, but I believe strongly that with the production from Dangote and other refineries when they become functional and the fact that it is now open to all to bring in products into the country, I can assure you that we may not even see lower pump prices.
“So please let’s not dwell on the increase in pump price. We will assess it and if there is need for us to intervene we will intervene.”
Akpabio further assured Nigerians that the Senate would ensure their comfort in the best way possible.
“There is no point offering services to Nigeria if we are not prepared to improve on the lot of Nigerians. The 10th Senate is very prepared to change the paradigm and ensure that the future of Nigeria is better than what it is today.
“I pledge before you that working collectively, we will make legislations and the right motions and intervene with the intention to build a better future for all Nigerian children, those born and yet unborn.
“When I say that brighter days are ahead, it simply means that all the wrongs that kept the country where it is will be corrected,” the Chairman of the National Assembly stated.
However, amid concerns over the debilitating impact of rising cost of petroleum products in the country, the Trade Union Congress (TUC) has asked the federal government to consider subsidising crude oil supply to local refineries.
As part of measures to ensure positive gains from deregulation, it said that all petroleum products marketers should be given equal opportunity both to access products from Dangote Refinery and other sources.
The union also said that the federal government should intervene with measures to strengthen the Naira over major foreign currencies such as the Dollar and Pounds as a means of arresting the high inflation rate currently ravaging the country.
Addressing journalists in Abuja yesterday on the state of the nation, TUC’s President, Festus Osifo said the policy of full deregulation of the downstream petroleum sector was not bad in itself.
He argued that what was responsible for the continuous hike in prices of products including PMS is the ill-advised floating of the Naira, maintaining that the country’s currency is presently undervalued compared to other currencies.
Speaking on the economic indices that effect the pump price of petrol in the country, Osifo said that because crude oil is sold at international price, products from domestic refineries tend to be affected by volatility of the foreign exchange market.
“Like I said here, if government today makes a special intervention in that sector by pegging foreign exchange rate for crude supply to Dangote Refinery at 1,200 Naira to a dollar, PMS price is going to crash much more below N700 per litre of PMS.
“So the demand is that government should create a special foreign exchange scheme for that purpose. There is no government in the world that doesn’t intervene in its critical sector, and the critical sector in this case is the energy sector. We shouldn’t leave it to all the vibrations and the gyrations today that we are having regarding our Naira.
“So when that special intervention is done, the PMS price will even go below where it was moved from. It was moved by N800 plus. But when that intervention is done, it’s going to go down to N700,” he emphasised.
Osifo said that TUC had studied the petroleum products supply crisis in the country and summarised them under three factors namely: Availability, affordability and accessibility.
He said: “When we talk about energy security, there are three principal things that we dwell on. One, is the energy available? Two, is the energy accessible? Three, is the energy affordable? These are the three things.
“Because if energy is not available, even when the price is cheap, you cannot have access to it. Even when the price is cheap, you will not have enough supply. That means no availability.
“What is going to happen at the end of the day is that you are going to have speculators. You are going to have the demand. So the higher demand will be chasing very few, I mean, reduced quantity,” he said.
The TUC president said that what is happening now is that the federal government is selling crude oil to the Dangote Refinery at the prevailing international market price which ultimately impacts on the depot price PMS.
“So if that exchange rate today, as we know, is the exchange rate that is bordering around N1,600 plus. But government can intervene in that sector by what we have opined earlier. If that is done, in that case, you are not subsidizing even consumption. You are subsidizing production.
“That will even help Dangote Refinery to even employ more Nigerians and make its operations much more efficient. And that will crash the PMS price to where it was as of June last year.
“So gentlemen of the press, that is our demand to government. Three things. One is affordability. So we must be able to buy this product. We want the price of the product to go even below where it was before. Not just where it was before, but if it will go below, if we attend clearly to the issues that are bordering on foreign exchange,” he argued.
When asked the position of the Congress on the prolonged rehabilitation work at the local refineries, Osifo said that as things stand now, only federal government can say specifically when they will come on stream.
He however noted that the two refineries may not bring the needed relief to Nigerians except the government takes steps to stabilise the foreign exchange rate.
Osifo further spoke on the delay in the implementation of the N70,000 minimum wage especially at the subnational level. While lamenting the sufferings in land, Osifo said that TUC was demanding that states urgently constitute Committees on consequential adjustment to hasten the payment of new minimum wage to workers.
Meanwhile, while in Abuja the NNPC continued to sell fuel at N1,030 yesterday officially, private marketers were selling the product for between N1,200 and N1,400 per litre.
In the same vein, many filling stations still remained shut, even as fuel queues built up in several parts of the Federal Capital Territory (FCT) and surrounding suburbs.
In Oshogbo, the story was not markedly different as petrol station owners in Osun State adjusted their prices to between N1,350 and N1,400 per litre.
Checks by THISDAY yesterday in Osogbo, Osun State capital, confirmed that independent marketers had raised their petrol dispensing facilities to reflect the new price regime. Before Wednesday’s increase, independent marketers were selling a litre for N1,100 and N1,200 respectively, while the two NNPC stations located around Governor’s office and in the metropolis were selling a litre to motorists at N865.
Few motorists and commercial bus drivers who spoke with THISDAY decried the increase in the price of petrol, saying it would bring more hardship to Nigerians.
Similarly, car owners in Kano have been forced to abandon their vehicles following the new increase in the pump price by the NNPC.
At the time of filing this report, fuel was sold for N1200 at AA Rano and Aliko filling stations, while some of the independent marketers sold the commodity for between N1,250 and N1,350. However, hundreds of motorists queued up at the NNPC outlets where the fuel was sold yesterday at N1, 030, to buy the fuel, but with long queues build-up.
In Kaduna, filling stations adjusted pump prices of petrol following the latest price increase by the NNPC. At the NNPC Mega Station, near Indomie Factory, along Kachia road, the pump price of petrol per litre was up to N1,070 from N904.
At Enyo Filling Station, along Constitution Road, the price had been adjusted to N1,250 from N1,200 per litre. Also at Rain Oil, near Kaduna Refinery Junction, the price rose from N1,200 to N1,250 per litre while A.A Rano filling station by station market increased its price from N1,300 to N1,400. At Sharon Filling Station, along Kachia road, petrol sold for N1,200, from N1,050.
The story was not different in Warri, Delta state, where a litre of the fuel now sells for between N1,300 to N1,400 per litre as there doesn’t appear to be a mega NNPC filling station in Warri.
Residents of Rivers State also continued to groan over the sudden hike in PMS, leading to an increase in transportation fares paid in the state. Before the announcement by the NNPC, as of Monday this week, a litre of the fuel was sold for between N980 to N1150.
But as at yesterday (Thursday) a litre of petrol was being sold for between N1,200 to N1,450.
THISDAY’s visit to some of the filling stations within Port Harcourt and Obio/Akpor axis, revealed that KellyVal filling station at Emenike junction was selling at N1,348. Tonninno along Ada-George sold at N1,300, while Jack filling station and Giccel on Ogbogoro Road sold N1,450.
Also, a popular private Matrix filling station along Rumuodumanya axis sold at N1,200, while NNPC mega filling stations at Rukpoku by C4I checkpoint and branch at Lagos bus stop in Port Harcourt Township sold at N1,065 as of Thursday.
Meanwhile, the former IPMAN chairman in Rivers State, Dr Joseph Obele, has observed that the new fuel increment might have been triggered by the withdrawal of NNPC as middleman from Dangote Refinery supply chain.
Obele said the NNPC’s decision to end its exclusive purchasing agreement with Dangote Refinery allows other marketers to buy petrol directly, promoting a more deregulated market.
Reacting on the development in a statement yesterday, the former IPMAN boss in the said: “The rumour surrounding new fuel price increment is true as the NNPC Retail buying portal as reflected as such and even NNPC Retail filing stations nationwide has adjusted price upward.
“The new buying rate for marketers within Port Harcourt catchment area is now N1,045 per litre as against the rate of N876 it was before today, while marketers in Lagos will now buy at a new rate N1,010 per litre”.
He noted the importance of explaining the cause of the increment to general public, saying that the marketers’ buying rate is different from marketers’ selling rate at filling stations.
“The ex-depot price is the rate marketers do buy from NNPC, after which marketers will add a mark up based on over head expenses and Operating cost. The new fuel increment might have been triggered by the withdrawal of NNPC as middleman from Dangote Refinery supply chain.
“This implies that the national oil company will no longer cover the price gap between the facility’s price and the selling price to retailers, previously absorbing a subsidy of N133 per litre. The product which sold for N897 in Abuja, the nation’s capital, currently is selling for N1,030 as at today.
“The vulnerability of Nigerians regarding frequent increment of PMS is a clear indication of the failure of the current leadership of Nigeria Labour Congress (NLC)”, he said.
He noted that while as of last year, a truck of 45,000 litres of PMS was purchased for N7 million only, arising from the recent increment, a truck of PMS will now cost N47.2 million,
“The inability of marketers to raise capital due to the recent increment will make 10,000 marketers quit business, and at such those marketers will sack over 1 million direct and indirect staff,” he said.
With the deregulation of petrol pricing and return of competition in the downstream petroleum sector, the Managing Director of TotalEnergies Marketing Nigeria Plc, Dr. Samba Seye, has restated the company’s commitment to delivering quality products with good standards across its service stations in Nigeria.
He also expressed the major marketer’s focus on customer satisfaction, efficiency, innovation and service excellence which he said were part of the core values of the company.
Seye stated this in Lagos during the company’s Customer Service Week, adding that with the operationalisation of the 650,000 barrels per day Dangote Refinery and the Port Harcourt Refinery expected to start production soon, Nigerians should expect enough supply of petroleum products soon.
Seye said, “Customers want to get products. So, we are focusing on that and we try to deliver them products with good standards. We are following the NNPC. If we get products, we sell; so, we hope in the coming weeks, we will have enough product.
“We are hopeful that with Dangote Refinery, things will change. It may not just be immediate, but in the coming days and weeks ahead, we expect to see that this thing will change.
“Just like the country is hopeful with the coming of Dangote Refinery and hopefully, with the Port Harcourt Refinery coming, we are expecting that there will be enough supply to feed all of our stations.”
He further said that TotalEnergies has over 514 service stations and that it is present in all states.
The Senate yesterday advised President Bola Tinubu to withhold monthly allocations to state governments that would still be running caretaker committee arrangements in their local government councils by the end of October.
The red chamber also hit hard at state governments over council elections held in the last two weeks, describing the entire exercise as a sham.
The Senate resolutions were sequel to the motion by Senator Abba Moro, representing Benue South in the National Assembly.
Moro’s motion was titled, “The Sham Benue Local Government Elections of Saturday, 5th October, 2024: Abuse of the Constitution and Need for Intervention by the Senate”
It was co-sponsored by some of his colleagues including Sen. Titus Zam Tartenger (Benue North West); Sen. Emmanuel Udende Memga (Benue North East; Sen. Nwoye Tony (Anambra North).
The red chamber condemned “the Benue State Independent Electoral Commission’s blatant disregard for democratic principles in the sham local government elections of Saturday, 5th October, 2024”
They called on the Benue State Independent Electoral Commission to conduct elections in those places where elections did not hold and allow the people to choose the representatives of their choice.
They also urged relevant government institutions to nullify the ‘sham elections’ and do the right thing in line with laid down principles of law.
The federal lawmakers further urged the federal government to deny allocations to Local Governments Council’s where selections were done, akin to appointment of Caretaker Committees.”
All the senators who contributed to the Senate on the motion noted with concerns that elections conducted by the various state electoral commissions, were written and names of winners announced in government houses.
They alleged that the polls took place in the private homes of the chieftains of the ruling parties making the entire process a mere coronation of candidates of the ruling party and not a proper election contemplated under the 1999 Constitution of the Federal Republic of Nigeria (as amended).
The senators equally noted that the provisions of Section 197 of the said Constitution, together with the Third Schedule, P. 11 of the Constitution have been grossly breached.
They said the local government council elections recently conducted in various states were marred by rampant manipulation, thwarting the goal of establishing truly representative local governments in Nigeria.
In his comment, Senate President, Akpabio, who presided over the session claimed that the local government elections were imperfect.
He said: “But let me point out that in a quiet moment, the elections were not perfect. The local government elections were not perfect.”
The Senate President stressed the need to reposition the local government system of governance.
He said: “Now, the world needs to know that it is not limited to only the PDP states, that the share of local government elections goes beyond party lines. I think that’s the conclusion of the Senate. And that we need for us to do something to reposition the local government as a third tier of government.
“What you are seeing here is that it has never really been a third tier of government. So, we commend the Supreme Court of Nigeria for the ruling that the funds of local government should go directly to local governments.
“Then we on our part in the National Assembly must give it, we must take the next step to ensure that the decision that has been so far given by the Supreme Court becomes alive.”