New findings have revealed that the market open price of petrol has hit N160 per litre. This is as a result of the landing cost that is within the region of N138 per litre.
It was gathered that the upward movement of the price was informed by the rise in the price of crude oil at the international market.
With the new development, the Nigerian National Petroleum Corporation
(NNPC), which has now assumed the status of sole importer of petrol into
the country pays about N750million daily on subsidy of petrol as the
price modulation introduced in May last year finally crumbled.
pays additional N15 per litre on every litre of petrol as the national
consumption figure hits 50 million litres during the yuletide period.
However, this consumption figure is expected to lower to around 45
million litres from February.
In addition to the landing cost at
N138 per litre, there are other costs that include retailers (N6),
transporter allowance (N3.36), dealers (N2.36), bridging fund (N6.20),
marine transport average (N0.15) and administration charge (N0.30),
which come to N18.37. The amount petrol should be sold at the pump price
should be N156.37, as claimed by the importer
In his reaction to the
pricing of petrol, the General Secretary of the Nigeria Labour Congress
(NLC) and member of the Petroleum Products Pricing Regulatory Agency
(PPPRA), Dr Peter Ozo-Eson, said labour would oppose any price
He said: “Our position is very clear. We are opposed to a
policy that allows this kind of price increment to take place. We also
believe that government can still reverse itself by returning to the
managed system until domestic refineries are sufficiently working.
“Relying on importation for this kind of policy will continue to generate the same impact it is generating presently.”
On whether labour is advocating a return of subsidy, Ozo-Eson, said the option is for government to take.
The NLC Scribe also dispelled the insinuation that there is no money to
fund subsidy, saying: “It is a choice for government to make. The issue
of money is matter of priority for government. We opposed this type of
price modulation when they did it and we predicted all that is happening
today. Nothing has changed as far as we are concerned.”
part, the Director General of the Nigeria Employers Consultative
Association (NECA), Olusegun Oshinowo said Nigeria is living a lie.
“We are caught between economic imperative and political expediency.
Government had earlier come out to say that it has deregulated the
downstream sector. Our own understanding of that is that the entire
products in the downstream would now be subjected to the dictate of free
market,” he said.
Oshinowo also observed that Nigeria is tending towards regulation again and that would not augur well for the economy.
Oshinowo, who is a member of the PPPRA board, said the agency has not been given the freehand to operate.
He said: “Even though I am on the board of the Petroleum Products
Pricing Regulatory Agency (PPPRA), I must say that the agency is
culpable. This is because the PPPRA should have been tweaking its
template to reflect the actual landing cost of petroleum products.
is a world of difference between indicative price template and price
modulation. Indicative price template should reflect the market price of
a litre of petrol, which will be an indicative price for anybody that
wants to operate in that terrain. That has not happened.”
Scribe declared that the agency must tell the nation what it is
presently spending on fuel subsidy, as it has assumed the sole importer
of petrol once again.
He added: “While the NNPC has now come back as
the sole importer of petrol, it is yet to tell the country how it has
been funding the importation of fuel if the landing price is above the
Has the NNPC been subsidising quietly? What this shows is
that since the landing price is above the selling price, somebody is
already subsidising the product. To what extent has the NNPC been
subsidising? And where do we go from where?”
Oshinowo was quick to
exonerate the board of any culpability in the matter, adding, “The
members of the board are not culpable because the board only started
meeting in December and we have flagged off this issue. We are yet to be
given detailed briefing, but at our next meeting, which is slated for
the end of this month (January), the management would give us full
briefing on it. So, it is still early days for the board to be able to
get its fingers round all of these, but we know that these are the
issues the board has to face.”
He explained that the PPPRA should
set the template on a regular basis, taking into account appropriate
variables and review the template, as soon as any of the variables