The Nation Newspaper

Tag: Fuel price hike

  • New petrol price illegal –  Falana

    New petrol price illegal –  Falana

    Lagos lawyer, Femi Falana (SAN) has described the increase in the pump price of petrol from N86.50 to N145.00 as illegal and contemptuous.

    “In view of the illegality, insensitivity and immorality of the price increase the federal government should cancel it, revert to the status quo and consult widely with all relevant stakeholders in the society‎,” he advised.

    In a statement issued in Lagos yesterday and titled, “The illegality, immorality and insensitivity of fuel price increase ‎”, the lawyer justified his view that the increase in ‎the pump price by government was illegal.

    Falana cited the case of Bamidele Aturu versus Attorney-General of the Federation (unreported suit No. FHC/ABJ/CS/591/2009) where the Federal High Court declared illegal and unconstitutional the policy decision of the federal government to deregulate the downstream sector of the petroleum industry contrary to the combined effect of the provisions of the Price Control Act and the Petroleum Act.

    He lamented that in total defiance of the said order of the federal high court, the federal government has deregulated the downstream sector of the petroleum industry.

    Although, the minister in-state, Dr. Ibeh Kachukwu while justifying the new policy regime, claimed that “PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.” Since the Petroleum Products Pricing Regulatory Agency (PPPRA) which is statutorily empowered to recommend the price of petroleum products has not been reconstituted the unilateral decision of the Executive Secretary of the body to fix the pump price at N145 per litre is ultra vires and illegal in every material particular”.

    Falana recalled that barely a month ago, Dr. Kachikwu had announced that fuel subsidy had been removed through his ingenuity and that while celebrating the “success” recorded by him in the management of the petroleum industry; he disclosed that “Nigeria was saving $1 billion in subsidy removal and $1 billion in fuel importation. He also stated that “for the first time, our refineries are ready to work now crude has been pumped from Brass to Port Harcourt. Pipeline is being used for the first time in 10 years for the first time in six years. For the first time we are able to pump to Ilorin, we have not done that in 10 years.” Curiously, Dr. Kachikwu’s “giant strides” in the petroleum industry appear to have collapsed completely before our very eyes,” he stated.

    He challenged the Minister of State Petroleum, Dr. Ibeh Kachukwu, to tell Nigerians the justification for the new removal of fuel subsidy announced on Wednesday if subsidy had been removed over a month ago and the country has been saving $2 billion from fuel importation and subsidy removal while the refineries are now working at full capacity.

     

  • Deregulation: Gbajabiamila calls for review of minimum wage

    Deregulation: Gbajabiamila calls for review of minimum wage

    The Majority Leader of the House of Representatives, Hon. Femi Gbajabiamila (Lagos-APC) Thursday said in order to cushion the effects of deregulation of the petroleum sector by the Federal Government, there was need for a review of the minimum wage of workers.

    The majority leader who had fought relentlessly against efforts by past governments to remove petroleum subsidy said though it was necessary to deregulate the petroleum sector to shield the country from economic problems, it was also necessary to raise the minimum wage in order to meet the rising cost of living in the country.

    His words: “There has to be a serious review of the minimum wage if you are going to increase the pump price of petrol because we all know everything rests on that.

    “Prices are going to skyrocket, from school fees to food to transportation to school uniforms and to books. Everything is going to go up because of mono economy. If we are going to do that, it is incumbent upon the government to take seriously the demands of labour.

    “Minimum wage needs to be reviewed; we cannot increase the cost of living and keep salaries where it is, they go hand in hand.”

    Gbajabiamila gave a vivid account of what transpired at the stakeholders’ meeting at the Villa on Wednesday.

    He said: “I was at the stakeholders meeting with the Vice President Wednesday and other stakeholders before the decision was made.

    “The story that was painted, the details, the breakdown and the facts were scary. From what I read and what I saw, if we had continued that way we may not even have a country in two months time.

    “Salaries would not have been paid by any state. Faced with that, it puts me in a very difficult situation and serious dilemma as to which way to go. I have always on one hand fought against the removal of fuel subsidy but now, I am confronted with very scary details as to if they don’t deregulate.

    “The consequences will be very bad for me and you so it is like being caught between the devil and the deep blue sea.”

    Gbajabiamila however said the Federal Government ought to have established refineries before removing the subsidy.

    His words: “I believe that if God has given you natural product the least we should do is to allow the people to benefit from that kind of product,” adding that subsidy has dented the image of the country.

    “If subsidy is being abused, all we need to do is to block the holes of abuse and not to punish the whole of Nigerians for the abuse of a few people.

    “But having said that, I have always agued why don’t you build a refinery first if at all you have to remove the subsidy. It is only in Nigeria that subsidy is given a bad name.

    “There is subsidy all over the world, in America agriculture is subsidized and in UK transportation is subsidized.  It is only in Nigeria that they say subsidy is bad. So, why is it not bad in other countries? That’s what we need to look at.”

  • Fuel price increase, insensitive, punitive – Shehu Sani

    Fuel price increase, insensitive, punitive – Shehu Sani

    As the pump price of fuel increases to N145 per litre, the Senator representing Kaduna Central Senatorial district, Senator Shehu Sani has called on President Muhammadu Buhari to weigh in on the Nigerian National Petroleum Corporation (NNPC) to rescind the decision.

    Senator Sani who is the Chairman, Senate committee on Foreign and Domestic Debt opposed the increase in the pump price saying it is insensitive and punitive.

    The Senator in a statement made available to newsmen in Kaduna Thursday, said the outrageous increase in the pump price is social provocation.

    According to the statement, “The decision by the NNPC to increase the pump price of petroleum products is insensitive and punitive.

    “Its most unfortunate that at a time when poor Nigerians are facing enormous economic hardships and are being asked to be more patient all the NNPC can do is to add to their suffering.

    “It’s utterly irrational and illogical to further impoverish the people in order to achieve liberal self serving liberal economic aspirations. It’s all evidence that capitalist forces are holding the FG hostage and are blackmailing it to implement its inimical version of economic reforms. It makes no sense if everyone must perish in order to revamp the economy.

    “Economic reforms are necessary but it must be done with a human face and human heart if it’s made in the interest of human beings. Outrageous increase in pump price is a social provocation.

    “It’s possible to reform the oil sector without necessarily incinerating the country. We must not take the patience, the sacrifice and the good will of Nigerians for granted.

    “I stand oppose to the increase in pump price and I call on PMB to weigh in on the NNPC to rescind the decision,” Senator Sani said.

     

  • New fuel price: We are disappointed – TUC

    The Trade Union Congress of Nigeria (TUC) said Thursday that government never consulted them on the recent price hike of premium motor spirit otherwise known as Petrol nor allow them to make input before the announcement.

    In a state signed by the President, Comrade Bobboi Bala Kaigama and Acting Secretary General, Comrade (Barr.) Simeso Amachree described the presence of organised labour at the meeting where the decision was taken as

    “premeditated ambush by the government which clearly did not invite us for any dialogue”.

    The Congress said they were unaware of how the government arrived at the new price as well as the decision of the government to allow market forces alone determine the cost of the product.

    The statement explain that when the government brought up the issue of a price increase, leaders of organised labour present at the meeting requested for time to consult their various organs and report back and were allowed to leave the meeting for consultation.

    The statement reads: “The Trade Union Congress of Nigeria wishes to state emphatically that we do not know how the Federal Government arrived at the new price of N145 for Premium Motor Spirit (PMS), popularly known as petrol. Neither do we appreciate how they arrived at their decision to allow market forces alone determine the cost of the product.

    “The Congress wants to use this opportunity to put the records straight concerning the development.  The organised labour received a 24-hour notice inviting us to meet with Vice President Osinbajo and some other key government functionaries including the Minister of Labour and Employment, the Minister of Information, the Chairman of the Governor’s Forum, and the Minister of State for Petroleum.

    “Others include the principal officers of the National Assembly led by the Deputy Senate President, the Speaker of the House of Representatives, and the Chairmen of the respective Committees on Petroleum in both chambers of the Assembly.

    “The meeting held yesterday. The call for meeting stated no specific agenda, and we were left to conjecture. Little did we know that the government had already concluded plans to hike the price of petrol.  Indeed we were taken aback.

    “The meeting had the leadership of labour in attendance, but we never made any input.  Not with the shock we experienced at the premeditated “ambush” by the government which clearly did not invite us for any dialogue.

    “When they stated their plan to introduce the new prices, our response was to ask for time to consult with our respective executive organs and subsequently revert appropriately. The government representatives agreed.  And so we left.

    “We were therefore totally confounded and shocked when we got to know that they later went on air announcing new prices for petrol. But our focus and hope remain strong.  We know what to do.

    “Thus the TUC has scheduled an emergency meeting of its National Executive Council (NEC) for Friday 13 May, 2016 to x-ray the government’s pronouncement and take a stand on the matter in the best interest of Nigerian workers and the masses of our people.

    “To say Nigerians are disappointed and dismayed at the fuel price hike would be a colossal understatement, especially as the present APC government repeatedly insisted during their pre-2015 election campaigns that there was already nothing like subsidy during the immediate past administration.  Alas, what a great volte face!  What betrayal in high places!

    “For sure, we know that the fuel scarcity the nation is currently experiencing is artificial, and we have observed comments of those benefiting from the system commending the latest development.
    “For us, the fact that petrol is currently selling for between N150 and N250 per litre does not mean that such outlandish prices should be maintained, least of all endorsed as official policy. We are meeting soon and will come out with our position.  God bless Nigeria and her people”.

  • Fuel price hike: NUPENG, PENGASSAN to meet in Calabar

    Fuel price hike: NUPENG, PENGASSAN to meet in Calabar

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) will on May 12 and 13 deliberate on the new pump price announced by Federal Government.

    Alhaji Tokunbo Korodo, the South-West Chairman of the union disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos on Wednesday.

    According to him, it is too early to make any official statement until the two bodies meet to deliberate on the matter.

    He said that the meeting would discuss the new development and come out with a stand on the matter.

    Korodo, however, said that no official of the two oil workers labour unions was authorised to speak on the new pump price as announced by the government.

    NAN reports that the Federal Government on May 11, announced a new price regime for petrol with the highest price of N145 per litre.

    The Petroleum Products Pricing Regulatory Agency (PPPRA) said in Abuja that the new price regime had taken effect from May 11.

    The NNPC, however, advised its retail stations on the outskirts of major cities to sell at prices lower than N145 per litre.