The Nation Newspaper

Tag: price hike

  • Stop excessive price hiking, Abuja market boss cautions traders

    Stop excessive price hiking, Abuja market boss cautions traders

    The Chairman of the Wuse Market Traders Association in Abuja, Okorie Ikechukwu-Raphael, has cautioned traders against excessive profiteering, warning that arbitrary price hikes are worsening economic hardship for Nigerians.

    Speaking with newsmen in Abuja on Friday, Ikechukwu-Raphael described the practice as unpatriotic and harmful to the country’s economic growth, stressing that it undermines the gains of government policies aimed at stabilizing the economy.

    Praising President Bola Ahmed Tinubu’s administration, he urged traders to sell at reasonable rates, echoing the Federal Competition and Consumer Protection Commission (FCCPC)’s campaign against price increases of 200 to 300 percent.

    “Businesses should have a human face — sell at reasonable rates so that citizens can breathe. Give a human face to the business we are doing,” he said.

    He further noted that citizens must support national recovery efforts, emphasizing that economic stability cannot be left to the government alone.

    Read Also: Dangote Refinery slashes pump prices

    According to him, the Tinubu administration has made progress in reducing volatility in fuel prices, exchange rates, and food costs, which now fluctuate within a “manageable margin of two to five percent.”

    “Last year, I noted here that the President was working hard to stabilize the economy amid turbulent exchange rates, fuel price fluctuations, and rising food costs. At that time, I predicted that by 2025, we would be on ‘cruise control.’ Today, we are seeing relative stability: fluctuations in exchange rates, petroleum products, and food items are within a manageable margin of two to five percent. The President is now focusing on ensuring more food gets to the table of Nigerians”.

    Admitting that insecurity and poor infrastructure remain the biggest threats to food production, the market leader expressed optimism that ongoing efforts by the National Security Adviser and the Ministry of Works are aimed at resolving these challenges.

    Ikechukwu-Raphael also commended the Dangote Refinery for supporting distribution systems that help reduce the cost of moving produce across the country, while highlighting President Tinubu’s recent agreement with Brazil to import high-yield crop varieties into Nigeria.

    On the international front, he said investors’ confidence in Nigeria was improving, as the Naira now reflects “real value” in global transactions.

     “Government policies are becoming more transparent, and funds are being better utilized in turnkey projects such as irrigation and water supply,” he added.

  • No fuel price hike, IPMAN, NNPCL insist

    No fuel price hike, IPMAN, NNPCL insist

    • Shun panic buying
    • Group hails petrol stability

    The President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, yesterday reiterated that any talk of petrol pump price increase is mere rumour.

    Maigandi, in a telephone conversation with The Nation yesterday, explained that though private depots in Lagos sell the product at N621 per litre, IPMAN members in the axis have been able to stick to the current retail price of between N600 and N630 per litre at the pumps because they get their supplies mainly from the Nigerian National Petroleum Company Limited (NNPCL) at N568 per litre.

    “Yes, we make very little profit on what we sell now, but it is a sacrifice that everybody has to make in the interest of the country. Subsidy has been removed, so we must all make the sacrifice and cooperate with government. Besides, we have not received any of such instruction to increase price from NNPCL who is the only importer of the product. So if NNPCL says no increase why would anybody increase the price?” Maigandi asked rhetorically.

    Read Also; Nollywood veteran Olofa Ina dies 

    In a related development, the National President, Petroleum Retailers Outlet Owners Association of Nigeria (PROOAN), Dr. Billy Gillis-Harry, yesterday said the Federal Government and NNPCL ought to be celebrated for the stabilisation of fuel prices without the need for subsidy payments.

    He spoke in an interview on ARISE NEWS, while examining issues around the alleged ongoing subsidy payments because of a purported discrepancy between the retail price of petroleum products and the landing cost of petroleum in the country.

    “I think that if subsidy is being paid, we should hear it from President Bola Ahmed Tinubu who clearly stated that the subsidy is gone on May 29, 2023. We have also not heard from the group CEO of NNPCL, Engineer Mele Kyari, and neither have we heard from the MD of NNPC Retail Limited.

    “So, it is correct that people can have assumption competitions. Associations that are busy working for the interests of Nigerians and their members can also do some projections and speculations as to what’s going on, but the reality is that we can only get accurate information from the source. So, if the government says no subsidy means there is no subsidy, and that’s the reality,” Gillis-Harry stated.

     “So, if the government has said that they are not paying subsidy and allow petroleum products to rise from where it was about N480 to N630, there is a clear mandate that we cannot go beyond that and NNPC is managing to make that work. I think we should give them credit and give them kudos,” he added.

    According to Gillis-Harry, with Nigeria having the lowest fuel price globally, it is crucial to credit the President and NNPCL for implementing the policy that actualised the feat.

    Meanwhile, the NNPCL, yesterday again reassured the public that there is no increment in the price of the commodity.

    The Nigerian National Petroleum Company (NNPC) Ltd. assures the public that there is no imminent increase in the cost of Premium Motor Spirit (PMS), commonly known as petrol.

    “NNPC Ltd. urges Nigerians to disregard unfounded rumours and assures them that there are no plans for an upward review of the PMS price. Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,”  its spokesman, Olufemi Soneye said.

  • Price hike: DStv shuns court injunction, retains new rates

    Satellite service provider DStv has continued to implement its new bouquet rates despite court order restraining the action.

    DStv is a Sub-Saharan African direct broadcast satellite service owned by MultiChoice. The service launched in 1995, provides multiple channels and services to its more than 11.9 million subscribers.

    An official of DStv, who declined to give his name because they had been asked by the company not to speak on the issue, confirmed to the News Agency of Nigeria (NAN) on Friday that subscribers still pay the increased rates.

    “The case is being reviewed at the moment and there are some information that I cannot disclose.

    “But as it is, for all of the DStv subscriptions, the price still remains at its increased rate price list.

    “I do not have any information as to how long it will take to review the prices but the case is being reviewed in the court with the business and legal experts,” he said.

    In July, MultiChoice raised the subscription rate for the DSty Premium package from N14,700 to N15,800, Compact Plus from N9,900 to N10,650, Compact from N6,300 to N6,800.

    The Family package went from N3,800 to N4,000, and Access from N1,900 to N2,000 which was implemented from Aug 1.

    However, on Monday, Justice Nnamdi Dimgba granted an injunction restraining the video entertainment and Internet Company from implementing the new rates.

    The court also restrained MultiChoice from any conduct capable of interfering with the regulatory process of the Consumer Protection Council (CPC).

    The restraining order was issued in respect of Suit No FHC/ABJ/CS/894/18 brought before the court by the CPC following public outcry.

    NAN recalls that in March 2015, DStv announced a 20 per cent increase for all its satellite pay TV bouquets in Nigeria, which took effect from April 1, 2015.

    NAN also recalls that an order of interim injunction restraining Multichoice from enforcing the planned increase was granted by Justice C.J. Aneke of the Federal High Court in Ikoyi, Lagos.

    In spite of the ruling, DStv went on to implement the increased prices with the defence that the Court order was granted on April 2 after price increase had taken effect on April 1, 2015.

    The Director-General of CPC, Mr Babatunde Irukera in a statement on Friday unveiled a special channel for receiving complaints for customers who could not renew their subscriptions at old prices.

    “The Council is setting up a special channel for receiving complaints for this purpose.

    “This is in view of the continuing and increasing complaints that consumers are unsuccessful in renewing subscription in compliance with the order of the court, even after service of the order upon Multichoice.

    “As such, any consumer who has, or is experiencing this challenge should please send an email to multichoicecompliance@cpc.gov.ng, stating relevant information.

    “The information should include smart card number, name, telephone number, date and time of failed attempt to pay, supporting same with relevant evidence such as a screenshot or document (where necessary),” Irukera said.

  • Price hike: DStv subscribers advocate Pay-Per-View

    Some DStv subscribers’ on Wednesday, advocated a pay-per-view method of subscription following the recent hike in the cable television bouquet rates.

    DStv is a Sub-Saharan African direct broadcast satellite service owned by MultiChoice. The service launched in 1995 and provides multiple channels and services to its more than 11.9 million subscribers.

    The News Agency of Nigeria (NAN) reports that DStv has been facing backlashes from the public since rates for its programme bouquets were increased in July.

    According to the subscribers, they do not watch all the channels allotted in the different bouquets and would prefer to pay only for the channels they watch.

    “This move will be a shift from the present subscription pattern where several channels are lumped into bouquets arranged to suit various audience plans.

    “However, a pay-per-view plan will enable subscribers pay only for specific channels that they watch within a specific time frame, instead of a full bouquet,” they said on Twitter.

    Below are some of the tweets: @Wilson tweeted, “Okay, @DStv #DStv what do you have to say about this? Why not introduce a pay per view option where I can simply choose the channels I need.”

    @IDman_nt said: “Can we have a discussion centered on global application?

    “I have noticed in your expressions concerning this #DStv issue, which is fraudulent. You have been avoiding discussing #PayPerView application. Why? Are we not ripe for it? It’s done in South Africa.”

    @Funmi_o wrote: “My family and I only watch four channels. I don’t see the reason why I should pay for a bouquet I don’t use. Please let’s pay as we use.”

    @Omoaegbetuyi said: “If its not Premium Bouquet, its not complete entertainment #DStv, we need pay-as-U-view. How much to watch #SuperSport n #MNet channels only.”

    NAN reports that in 2017, there were speculations that DStv would be introducing the Pay-Per-View payment plan, although the cable TV denied the claims.

    Subscribers complaints increased when the cable network could not broadcast the Community Shield game between Manchester United and Chelsea on Sunday.

    According to the subscribers, especially the football fans who expected to watch the match, say they pay so much money to subscribe to DStv and wondered why it didn’t air match.

    The aggrieved fans also took to twitter to express their displeasure with threats to boycott the service.

  • Oil nears $75 as Saudi seeks price hike

    Oil prices rose yesterday to their highest since late 2014 as U.S. crude inventories declined after sources said top exporter, Saudi Arabia, is seeking to push oil prices higher.

    Brent crude oil futures rallied as high as $74.44 a barrel, the strongest since Nov. 27, 2014, the day  the Organisation of Petroleum Exporting Countries (OPEC) decided to pump as much as it could to defend market share.

    Brent futures were at $74.35  per barrel, up 87 cents from their last close.

    U.S. West Texas Intermediate (WTI) crude futures rose 71 cents to $69.18 a barrel. WTI had earlier hit $69.27, its best level since Dec. 2, 2014.

    “Oil prices continued to climb on Thursday as a decline in U.S. crude inventories and commentary from Saudi Arabia that it will be happy to see crude rise to $80 or even $100 helped boost prices,” RBC said in a note.

    OPEC and other major producers including Russia started to withhold output in 2017 to rein in oversupply that had depressed prices since 2014.

    OPEC and its partners will meet in Jeddah, Saudi Arabia, on April 20. OPEC will then meet on June 22 to review its oil production policy.

    Since the start of the supply cuts, crude inventories have gradually declined from record levels toward long-term average levels.

    Further supporting oil prices is an expectation that the U. S. will  re-introduce sanctions against Iran, OPEC’s third-largest producer, which can result in further supply reductions from the Middle East.

    August 2014 was the last time oil prices above $100 a barrel, but technical analyst Louise Yamada says the charts aren’t ruling out a return to triple digits.

    When asked if crude was never going to return to $100 a barrel on CNBC’s “Futures Now,” Yamada replied “not necessarily,” though emphasised that there are a few key levels that oil needs to hit first on the way up.

    “There are headwinds for oil, and remember that it’s been down almost 80 per cent since 2008 and from the 2011 high. “And I think if you were to get to these targets, you’re going to be running into the resistance of that four-year breakdown in 2014,” she said.

     

     

     

    But in the short term, the managing director of Louise Yamada Advisors does see crude running up to $78, thanks to some bullish formations in the charts.

    “This rally in oil has been a very slow-moving six-month process. But we do have (a) measured target from a head and shoulders that has been in place for three years that could take us to $75 or $78, where you run into the major resistance from the four-year breakdown in 2014,” she added.

     

  • Falana to govt: don’t succumb to pressure on fuel price hike

    Falana to govt: don’t succumb to pressure on fuel price hike

    Lagos lawyer Femi Falana (SAN) has urged the Federal Government not to succumb to the pressure of the Independent Petroleum Marketers Association of Nigeria (IPMAN)  to increase the pump price of fuel from N145.

    He described as illegal the price increment from N145 to N250 in some parts of the country by IPMAN.

    Falana said in a statement in Lagos yesterday that the power to fix pump price of fuel is vested only in the Minister of Petroleum Resources Pursuant to Section 6 of the Petroleum Act .

    He said: “Since the power to fix the price of petrol is exclusively vested in the Minister of Petroleum Resources, the Federal Government should ignore the reckless threat of the fuel importers.

    “Having repeatedly maintained that it has no plans to increase the price of petrol, the Federal Government should not succumb to the pressure of IPMAN which had promised Nigerians that the pump price would crash before the end of June 2016.”

    Falana regretted that the Federal Government was meeting with the some stakeholders to consider the proposal of the fuel importers owing to blackmail by the IPMAN  to accept an new increase in the pump price of fuel.in  his 2018 New Year Broadcast,  threatened to deal ruthlessly with the fuel importers for allegedly engaging in economic sabotage.

    “Are we to believe that the alleged economic saboteurs have  been granted amnesty to warrant the ongoing meeting on the proposed increase in the pump price of petrol?” he asked.

    He recalled that the Minister of Petroleum Resources increased  the  price of Premium Motor Spirit from N86 to N145 per litre in May 2016, noting that the increase was justified by the Federal Government as the only way out of the exorbitant prices of between N150 and N250 which Nigerians were subjected to at filling stations across the country.

    “The Minister of State in the Ministry of Petroleum Resources, Dr. Ibe Kachukwu, made it categorically clear that the new price would lead to improved supply and competition and eventually drive down pump prices, as experienced with diesel.

    “In celebrating the new pump price, the Independent Petroleum Marketers Association of Nigeria (IPMAN) confidently gave an indication that the official pump price would crash within a month. The IPMAN President, Chief Obasi Lawson said that ‘in less than one month, we will start reaping the benefits of the new policy. This new policy of the Federal Government that effected the change in price of the PMS is a welcome development and the PMS prices will start coming down soon’.

    “However, in December last  year the price, of petrol was illegally jerked up to N250 per litre by petroleum dealers in anticipation of another official increase in the pump price of PMS by the Federal Government. Despite the fact that  the Nigerian people were exposed to unwarranted pain and anguish as a result of the artificial scarcity of petrol in the country, the IPMAN has mounted pressure on the Federal Government to increase the price of petrol. As if that was not enough the IPMAN has threatened not to import fuel into the country if the price is not increased,” the lawyer-activist noted.

    Falana advised  the government to call the bluff of fuel importers and embark on the construction of modular refineries without any further delay instead of waiting for the Dangote Refinery which may not  be operational  until December 2019.

  • Fuel: Buhari rejects marketers’ demand for price increase

    Fuel: Buhari rejects marketers’ demand for price increase

    THE DEMANDS

     

    • Price increase
    • Total deregulation of petroleum products
    • Payment of outstanding subsidy

     

    FG’S OFFERS

     

    • Creation of special window for Forex from CBN
    • Presentation of request for payment of outstanding subsidy to National Assembly
    • Creating opportunity for the establishment of modular refineries
    • No return to era of fuel subsidy

     

    A subtle move by marketers for the federal government to increase fuel price appears to have failed.

    President Muhammadu Buhari is not disposed to the proposal, The Nation gathered yesterday.

    He is also saying No to the re-introduction of fuel subsidy, sources said.

    The pressure on government to effect a rise in petroleum price from N145 per litre is coming amidst the current acute fuel scarcity across the country.

    Hundreds of thousands of motorists, for the fifth day running yesterday, kept searching for petrol wherever they could get it at any cost.

    Commuters, many of whom went shopping for Christmas, were made to pay high fares for transport to their destinations.

    Many others had to walk long distances.

    Well placed government sources said the administration is concentrating on finding permanent solutions to the recurring fuel crisis including checkmating sabotage by some marketers and stakeholders, and putting all the nation’s 23 depots in 100 per cent shape.

    It was gathered that marketers are still unwilling to import products because of low or insignificant profit margin.

    They are seeking full deregulation of petroleum products.

    Key players in the petroleum industry attribute  the fuel crisis in the country to agitation for price hike by marketers, disruption of the supply chain, and sabotage by some stakeholders to force the government to deregulate the sector further.

    One of the sources said: “The key issue is price war. The marketers have made representation to the federal government and the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu to allow price hike of petroleum products and leave the sector to market forces.

    “The President and senior government officials are however opposed to price hike because of its spiral effects on the socio-economic life of the nation. It also has grave political implications for the survival of the present government.

    “In the last few months, the government has been trying to cope through the Nigerian National Petroleum Corporation (NNPC) until there was stress in the supply chain following threats by PENGASSAN and the challenge in Lagos.”

    Another stakeholder, speaking on the price war, said: “We import refined products as a nation. Once the prices of crude increase at the international market, they have effects on the cost of refined products being brought into our country.

    “The landing cost of Premium Motor Spirit (PMS) is between N165 and N170 per litre. The marketers are claiming that the profit margin is insignificant and they cannot recover cost, they say they need to top up prices since they no longer enjoy subsidy.

    “Initially, the same marketers said they had subsidy arrears to collect from the government and they will not import products. The arrears have not been appropriated for by the National Assembly and there was nothing the government can do.”

    But a government source said:  “To mitigate the issues raised by the marketers, this administration put some measures in place. For instance, the government created a special foreign exchange window for the marketers to enable them to import products.

    “Instead of using the forex, some of them diverted it to other use. In order not to hold the nation into ransom by the marketers, NNPC in the last one and a half years has been importing 99.9% of products. This sole importation also drains the resources of NNPC but it has to sacrifice to ensure availability of products.

    “And if NNPC imports, it sells to marketers but they are still complaining of low profit margin. The importation chain has its own stress because for the storage of the products, NNPC can only accommodate 55% of the products. The oil majors cater for 30% and independent marketers take charge of about 15%. So, at any point, these marketers are still needed.

    “The alternative is for all the nation’s 23 depots to be operating at maximum capacity to check the antics of the marketers.”

    A minister, who should know, also said the government was suspecting sabotage by some stakeholders.

    His words: “Before the present crisis, the nation used to consume between 30million to 35million litres of Premium Motor Spirit (PMS) daily but since this current challenge started, the consumption has  shot up to 80million litres per day.

    “Without a soothsayer, it is obvious that something had gone wrong. We cannot just rule out sabotage including diversion of products.”

     

  • DPR seals four petrol stations over price hike

    DPR seals four petrol stations over price hike

    OFFICIALS of the Department of Petroleum Resources (DPR), have sealed four filling stations in Edo State for selling premium motor spirit otherwise known as petrol above government approved prices of N145 per litre. The sealing of the filing stations followed outcry by members of the public that most filling stations were dispensing fuel at prices as much as N160 per litre. Affected filling stations were Foadal Oil at Airport Road, St Taye Oil and Gas at New Benin, Asoline at Sapele Road, Raptor oil and NIPCO Oil both at Upper Mission Road.

    Mr Enelama Victor, Head of Downstream, DPR Benin Zone who led the operation around parts of Benin City, the Edo State capital, said the current hike in prices of PMS was due to the unwholesome activities of racketeers and middlemen hoarding the products so as to tarnish the image of the Federal Government.

    Enelama said the Federal Government has not increased the price of fuel and that the distribution chain of the products by DPR was still being maintained. He added that fuel is still being loaded to all the depots across the country. The Benin DPR boss stated that his department was tackling the menace of racketeers and middlemen merchants in the industry which included the withdrawal of licenses from marketers who engage in product hoarding and other unwholesome practices.

  • Price hike ‘ll lead to crisis, says TUC

    The Trade Union Congress (TUC) yesterday cautioned the government against an increase in the price of petrol,. It said such move would be an open invitation to crisis. President and Secretary General of the congress, Comrade Bobboi Bala Kaigama and Comrade Simeso Amachree, in a statement said: “The Trade Union Congress of Nigeria (TUC) views  the recent statement credited to the Group General Manager, Crude Oil Marketing Department of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, that “the nation’s difficult business environment may make it difficult to sustain the current pump price of petrol” as highly insensitive and an open invitation to  revolution in Nigeria.

    “The Congress is surprised that the management of an organisation as important as the NNPC regularly contradicts itself, with members thereof speaking from both sides of the mouth.

    “We care little about whose responsibility it is to make the sector optimally functional, be it the NNPC or the marketers or whoever.  All we are saying is, “NO FURTHER PRICE HIKE.”

    “We shall not tolerate infliction of more pain on Nigerians; we kick against closure of more factories; and we hold the government responsible for insecurity, crime and other vices. They should stop telling us they feel our pain when all they do is to make it worse”

  • Price hike hard choice for Buhari, says Osinbajo

    Price hike hard choice for Buhari, says Osinbajo

    Vice President Yemi Osinbajo said yesterday that the hike in the price of petrol from N86 per litre to N145 per litre remained a hard choice for President Muhammadu Buhari.

    According to him, if there is any Nigerian who would not want the price of petrol to go up by one naira, he is President Buhari.

    The Vice President spoke at the Sheraton Hotels and Towers, Abuja, during the public presentation of a book “Anatomy of Corruption in Nigeria, Issues, Challenges and Solution”, written by Alhaji Yusuf Alli, SAN.

    The Vice President told the gathering that so many things that ought to have been done to address the suffering of Nigerians by the administration could not be done because of massive stealing and the depletion of Nigeria’s external reserves.

    He condemned the way and manner the nation’s wealth was pillaged by the previous government, saying  investigation had revealled that $15 billion was stolen from a single sector – an amount that is more than half of the nation’s foreign reserves.

    To Osinbajo, corruption is not just an evil, it is not just an immorality, it is existential because it could truly destroy lives and it has destroyed many lives and has continued to destroy the Nigerian economy.

    “When you consider that Nigeria’s reserves today stands at about 27 billion and you are investigating 15 billion for one sector alone,  that is over half of the entire reserves of the country… You cannot look at the problem and take your eyes away as if it is just petty stealing; it is not just stealing the resource of the cuntry, it is stealing the future of the country and that is why we have a situation that we find ourselves in.

    “In our case, we were unable to do so and the reason is because the reserve has been depleted and it is the same reason why it is difficult to do very many other things that we should be doing as a nation. I was saying in a message which I wrote in a chat book which eventually became public that if there is one person in Nigeria who insists that petrol prices should not go up by one naira, it is President Buhari.

    “If there is one person in Nigeria who I know does not want petrol price to go up by one naira, it is President Buhari, but he is left with no choice; what can you do if you dont have enough money in your reserves and you have to import fuel. All our refined petroleum products today are imported. A lot of the problems we have are associated with refineries and corruption-related issues even with the refineries.

    The Chief Justice of Nigeria, Justice Mahmood Muhammed, who was represented by Justice Musa Dattijo Mohammed, said a pandora box had been opened in Nigeria on corruption, with the resolve of the present administration and the reforms in the judiciary to fight corruption.

    He lamented that over the years some lawyers had been scuttling efforts to prosecute and administer justice on corruption cases, leading to endless adjournments, abandonement of cases and lack of fate in the justice system.

    Justice Mohammed, however, said given the damage done by corruption, the nation had a common cause to pursue the fight to a logical conclusion, especially considering the more proactive steps being taken by security agencies to tackle the scourge.

    Among dignatories at the event were Otunba Tunde Ayeni, Chairman of Skye Bank Plc who bought three copies for N10 million, Minister of Communications Adebayo Shittu, Prof. Ademola Popoola, the book reviewer, former Chief Justice of Nigeria Dahiru Musdapher, Supreme Court Justice Mary Odili, Justice Ibrahim Auta, Justice Nasir Ajanana, Justice S. D. Kawu and Augustine Alegeh, SAN.