By IduwiniVoice, January 20, 2023.

Petrol price has been increased officially by 8.8 per cent to N185 from N170 per litre by the Federal Government as the ex-depot price had shot up to N167 from N148 per litre.

Vanguard’s findings however, show that many filling stations have been selling far above this new price, a situation which may render this new price almost unrealistic.

The federal government directed that the new price regime to immediate take effect, in a notice to all fuel marketers, yesterday.

Vanguard gathered yesterday that a few members of the Major Marketers Association of Nigeria, MOMAN, had already adjusted their pumps prices in line with the new price directive.

A memo had been sent by the government to all marketers, including the Major Oil Marketers Association of Nigeria, MOMAN, and the Independent Petroleum Marketers Association of Nigeria, IPMAN a source said.

*We lift at N240 per litre —IPMAN*

However, responding to the development, the President of the IPMAN, Mr Chinedu Okonkwo, told Vanguard yesterday, “So I heard but we are waiting for the circular because without that we cannot do anything. Hopefully, by tomorrow (today) we will get a clearer picture.”

“Well, they can adjust as the product is scarce to get at the moment, but with the new approved price, we hope to get products so we can sell to consumers” when informed that some major oil marketers had adjusted pump prices to the new approved price, already.

Commenting on the development, the National Operations Controller, of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mr. Mike Osatuyi, said his members had continued to lift the product at N240 per litre.

However, most independent retailers of petrol in Lagos have adjusted their pump prices to between N290 and over N300 per litre.

The few IPMAN fuelling stations which had the products were selling at exorbitant prices as most of them have no stocks of petrol.

An independent marketer, Betsy Petrol at Alimosho LGA, Lagos told Vanguard that they were actually selling the last stock they had yesterday.

“I have pity for the Keke Marwa (commercial tricycle operators) and Okada (commercial motorcycle riders) who have been coming to the filing station in search of fuel. That is why I decided to open today and sell the little stock I have”.

The Federal Government had earlier concluded plans towards achieving stability in the downstream sector of the petroleum industry by gradually removing fuel subsidy with effect from April 2023.

*Total Deregulation Required —Marketers.*

Similarly, the Chairman, of the Major Oil Marketers Association of Nigeria, MOMAN, Olumide Adeosun, had earlier called for gradual deregulation of the sector.

“MOMAN, as an association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country given the current state of government finances and unpredictable international supply shortages. We, therefore, recommend a gradual price deregulation with targeted palliatives (eg. Transport and agricultural subsidies) to the public to ease implementation.” he said.

*It’s A Step In The Right Direction —CPPE*

“This development is a step in the right direction” the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf stated during a telephone interview with Vanguard, yesterday.

“This is a step in the right direction, but insufficient to make any meaningful impact because Nigerians are currently buying at prices ranging between N200 and N400 per litre in different parts of the nation, Yusuf added.

“We need to gradually move from here to possibly full deregulation in order to attract significant investment into the sector for the benefit of the nation.”

“The present subsidy is majorly enjoyed by a few persons involved in the value chain. The government should work towards opening the sector for the benefit of everyone.”

However, it was also learnt that the oil marketers were working on the proposal that would include full deregulation and implementation of the petroleum Industry Act. PIA to the Federal Government, an industry source posited.

*Expect Subsidy Removal— Finance Minister.*

This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed during an interview with ARISE TV on the sideline of the World Economic Forum in Davos, Switzerland, monitored by Vanguard yesterday.

“Where there is not enough revenue for the government to buy the refined petroleum products, we have had to borrow to buy the petroleum products. So, if we take that out, that is about N3.25 trillion. That is a significant relief, that we do not incur any more than that number that we projected for in 2023”.

Attributing the delay in fuel subsidy removal to the prolonged aftermath of the Covid-19 pandemic in Nigeria, Ahmed had said: “It was a decision that was taken as a collective, recognizing the fact that due to the lingering impact of the COVID-19 pandemic, and also heightened inflation, that removal of the fuel subsidy at that time, would have increased more burden on the citizen.

“The president does not want to contemplate a situation where measures are taken that is further going to burden the citizens. So, the decision was to extend the period from June 2022 (sic) to 18 months, beginning from January 2022.

“So, in June 2023, we should be able to exit. The good thing is, we hear a consistent message that everybody is saying this thing needs to go. It is not serving the majority of Nigerians.

“I listened to some of the new leaders that are campaigning for the next round of leadership in the country that is saying they will get rid of it very quickly.

“What will be safer is for the current administration to maybe at the beginning of the second quarter to start removing the fuel subsidy because it’s more expedient if you remove it gradually than to wait and move it all in one big swoop.

“So, the idea for us in the budget is that the subsidy costs should not exceed that N3.23 trillion. So, whether it’s done completely 100 per cent by June or by July, or whatever, it’s a process.”

*The Organized Labour calls for mass rejection of the APC.*

The Organized Labour have since expressed shock over the increase, describing it as the “last kick of a dying regime.”

Security anonymous status, a leader of the organized labour told Vanguard that a holistic look into this insensitive decision will be taken at a meeting of the organized labour which he believes will hold soon.

Calling on the Nigerian masses to not only resist the hike but to express their frustration during the forthcoming general elections, he said “It is shocking that this government has decided to add to the suffering of Nigerians in the midst of unbearable hardship occasion by anti-people’s policies of the government.

“This increase is totally rejected and unacceptable to organized labour and the entire suffering Nigerian masses. We see this increase as the last kick of a dying regime and Nigerians are not ready to die with the regime. We cannot continue on this lane. The government cannot continue to use its failures to punish Nigerians.

“We have an understanding that we are not going to talk about any of the issues until the local refineries are functioning. It is wicked, insensitive and the height of provocation.”

We are not only going to resist the Nigerian masses, but the Nigerian workers and the ordinary Nigerians will also express their frustration at the polls. The increase has reinforced the belief that Nigerians must take our destinies into our hands.”