The federal government has responded to the hike in petrol price by the Nigerian National Petroleum Company Limited (NNPCL).
In its announcement of the increase on Tuesday, NNPCL revealed that it had been hiked to N855 per litre.
Speaking via his official X account on Wednesday, the Special Adviser on Media and Strategy to President Bola Tinubu, Bayo Onanuga stated why the increment was inevitable.
Onanuga pointed out that NNPCL’s indebtedness to petrol marketers was a result of the company bearing the rising cost of petrol to protect Nigerian consumers.
Speaking further, he denied reports of the federal government deceiving citizens on the payment of subsidy for petroleum products.
“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent,” he said.
“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.
“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.
“That is the scenario that is unfolding, and the game changer and big relief giver may well be the Dangote refinery and other local refineries, which will become the fuel suppliers to the local market.
“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain,” Onanuga penned.
NLC Demands Immediate Reversal Of Petrol Price Increase
Meanwhile, the Nigeria Labour Congress (NLC) demanded on Tuesday that the Nigerian National Petroleum Company Limited (NNPCL) immediately reverse the fuel price increase, claiming that it has made Nigerians’ misery worse.
Amid the lingering fuel scarcity in the country, the NNPCL increased petrol price from N568 to N855, N897 (depending on the location per litre).
Condemning the move in a statement, NLC President, Joe Ajaero, accused the Federal Government of betraying the labour movement.
Ajaero said, “We demand the immediate reversal of the latest increase in the pump of PMS across the country, the release of all those incarcerated or being prosecuted on the assumption of having participated in the recent protests.
“Halt the indiscriminate arrest and detention of citizens on trumped up charges, reversal of the 250% tariff hike in electricity, and stop to the hijack of the duties of the Ministry of Labour and Employment.
“End to policies that engender hunger and insecurity, Halt to government’s culture of terror, fear and lying. We are guided by our belief in our country and the need to secure and sustain its sovereignty, integrity and welfare of the people.”
According to the NLC President, the current administration is yet to implement the new national minimum wage of N70,000.
While accusing the government of insincerity, Ajaero described the policies of the current administration as traumatic.
He recalled how President Bola Tinubu gave labour leaders the option of choosing from N250,000 as the new minimum wage in exchange for petrol price at N1,500, and said they rejected the offer due to the impact it would have on Nigerians.
“But here we are, barely one month after and with the government yet to commence payment of the new national minimum wage, confronted by a reality we cannot explain. It is both traumatic and nightmarish.
“Yet, when we told the government that its approach to resolving the fuel subsidy contradictions was patently faulty and would not last, its front-row cheer leaders sneered at us, saying we did not understand basic economics.
“But if truth be told, this act of betrayal is consistent with the character of this government. We recall the assurances we were given by the leadership of the National Assembly on the 250% tariff hike, that it had been dealt with and there was no need to openly engage the Minister of Power who was at that meeting,” he said.
Ajaero regretted that instead of the promised reversal, “the rate has since been jerked up further, putting more Nigerians and businesses in jeopardy.”
