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NLC and CSOs reject N935 per litre, demand lower fuel price

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NLC and CSOs reject N935 per litre in a country that produces and refines petroleum

By Jeph Ajobaju, Chief Copy Editor

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“Products are refined in Nigeria, yet the price you give Nigerians is based on imported products. Why should we applaud that? It is akin to someone stealing your money and returning only part of it, then expecting you to clap. We cannot applaud this” NLC official

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Labour and other Civil Society Organisations (CSOs) have demanded a further reduction in the pump price of fuel, rejecting as unsatisfactory the slash from N1,060 per litre to N935.

Dangote Refinery in partnership with MRS recently announced the price reduction of the commodity which previously sold for between N1,030 per litre in Lagos and and N1,060 in Abuja and Northern states.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) announced on Sunday it would begin selling fuel at N935 nationwide from Monday based on the latest arrangement with Dangote Refinery.

IPMAN National President Maigandi Garima enthused the reduction in Dangote’s ex-depot price for petrol and the uniform arrangement being put in place would enable marketers sell at N935 at their outlets, incurring N36 cost on logistics.

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But the announcement does not excite the Nigeria Labour Congress (NLC) and other CSOs, as they insist that the cost of petrol should drop further.

A senior NLC official, Chris Onyeka, rejected any applause for the federal government and the Nigerian National Petroleum Company Limited (NNPC) over the price reduction, arguing that the current pricing template does not reflect the true cost of fuel.

“Do you want us to clap for them? How can we be okay with a price of N935/litre of PMS? This is not the right price for PMS. You cannot base the price on imported products when we have refining capacity in Nigeria,” Onyeka said.

He added that the costs embedded in the current pricing framework – including foreign labour, freight charges, insurance, logistics, and profits accrued abroad – unfairly burden Nigerians.

“Products are refined in Nigeria, yet the price you give Nigerians is based on imported products. Why should we applaud that? It is akin to someone stealing your money and returning only part of it, then expecting you to clap. We cannot applaud this.”

Onyeka stood his ground that the only way to ascertain the correct price of fuel is by determining the actual cost of refining it domestically.

“We need to know how much it costs the NNPC to refine a litre of PMS in our local refineries, such as the Port Harcourt Refinery. That is the price Nigerians should be paying,” he pressed.

“This country belongs to all Nigerians. Let the government do the right thing that allows Nigerians to breathe. Let the poor breathe.

“The NLC’s position underscores growing discontent among Nigerians over the rising cost of living, with fuel price being a major contributor to inflation and economic hardship.:

Other CSOs also aligned with Labour on the pricing of fuel, according to reporting by The PUNCH.

Debo Adeniran (Centre for Accountability and Open Leadership Chairman)

“Well, we believe that if NNPC and the private sector actually give out PMS for free, they will still not run their business at a loss, because the other derivatives of petroleum products can still serve them, and can still make them to break even. So, even at that N900 and something, it’s still expensive.

“Dangote has kind of mooted the idea that it could drop to as low as N650. And if he has mulled this, then it means that it is the state, it is the NNPC, that will have been the clog in the wheel of such progress.

“And you know also that we expected that fare prices, especially PMS prices, will drop below N200 when Dangote was expected to come on stream.

“So, it’s unfortunate that we are still talking about over N900 and they want us to jump up and rejoice for that. That is not satisfactory. They should just let us see the breakdown of their production cost and why it’s still there.

“I mean, there are countries like Libya under Gaddafi that gave out PMS for free and they didn’t run anything at any loss. So, I believe that it can still go further down.”

Ibrahim Rafsanjani (Civil Society Legislative Advocacy Centre Executive Director).

“Dangote’s own is about N899 or something like that. Well, first and foremost, we are happy that there is a little reduction in the price. But also based on analysis and based on facts and evidence, we believe that it is possible for the Nigerian government to further reduce the price.

“Because if a private company can reduce the price and it still makes profit, we wonder why government-owned enterprises cannot really pity citizens.”

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