Reps, NBA, PDP, NNPP demand petrol price hike reversal in Nigeria
The sudden but significant increase in petrol prices in Nigeria has sparked widespread outrage and calls for reversal from various stakeholders.
The price hike, which saw petrol prices rise from N568 per litre to N897, has been met with strong condemnation from organizations such as the Nigerian Bar Association (NBA), the Peoples Democratic Party (PDP), and members of the House of Representatives.
Stakeholder reactions
Nigerian Bar Association (NBA) expressed profound concern regarding the abrupt fuel price hike. They argue that this increase imposes an unbearable burden on ordinary Nigerians who are already facing economic hardships. The association has called for immediate dialogue with relevant stakeholders to explore more sustainable alternatives to alleviate the financial strain on citizens.
House of Representatives members have also condemned the price increase, labeling it as “unacceptable” and “ill-timed.” They have urged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) to revert to previous pricing due to the heightened economic challenges faced by Nigerians. They emphasize that such increases exacerbate existing hardships related to inflation and unemployment.
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Peoples Democratic Party (PDP) rejected the recent petrol price hike, describing it as thoughtless given the current socio-economic climate in Nigeria. They have called on President Tinubu to intervene and reverse this decision, highlighting that many Nigerians cannot bear further economic burdens.
Coalition of Northern Groups (CNG) also voiced their rejection of the price hike, stating that it will lead to artificial increases in goods and services across Nigeria due to fuel’s centrality in economic activities.
The National Working Committee of New Nigeria Peoples Party (NNPP) criticized the government for what they termed “gross incompetence,” arguing that such a sharp increase in fuel prices would push more Nigerians into poverty.
Government response
The Vice President Kashim Shettima held meetings with key officials from NNPCL and other regulatory bodies to address these concerns. During these discussions, it was emphasized that petrol prices are determined by free market forces rather than government intervention, as stipulated by the Petroleum Industry Act (PIA). However, assurances were made regarding efforts to stabilize supply and manage pricing effectively.
The collective demand from various stakeholders reflects a deep concern over how rising fuel prices impact everyday life in Nigeria. With inflation already high and many citizens struggling economically, there is a pressing need for government action to address these grievances effectively.
Prices determined by free market forces – NNPC Ltd
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.
Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”
He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces. According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd.
Additionally, the exchange rate plays a significant role in influencing these prices.” On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery. Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”
He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”
