Federal Government Increases Petrol Price By 8.8 percent.
The Federal government of Nigeria has officially announced the increase in the price of petrol from N170 to N185 (8.8 percent).
Meanwhile, it has been discovered that many filling stations sell above the approved price.
In a formal notification to fuel marketers on Thursday, the Federal government has directed that the new approved price should take effect immediately. An internal memo that was released from the government to all fuel marketers such as the Independent Marketers Association of Nigeria, IPMAN, and the Major Oil Marketers Association of Nigeria, MOMAN, directed fuel marketers to adhere to the new directive.
In line with the new directive, some petrol stations under the Marketers Association of Nigeria, MOMAN, have of yesterday adjusted their fuel pumps while some do not have the product at all. Following the new development, Mr. Chinedu Okonkwo, the president of the Independent Petroleum Marketers Association of Nigeria, IPMAN says that the association is yet to receive a circular on Friday so as to have a clearer picture before they can make an adequate adjustment.
Speaking on the issue, Mr. Mike Osatuyi, the Independent Petroleum Marketers Association of Nigeria National Operations Controller says that members of the association have increased fuel price to N240 per liter. Some petrol retailers in Lagos State have already adjusted their petrol pump prices to N240 to N350 per liter, motorists were seen in long queues in petrol stations lamenting over the hard economic situation of the country, with a high rate of inflation coupled with the scarcity and high cost of petrol.
The scarcity of petrol products has made petrol stations under IPMAN sell their stocks at extravagant prices.
However, the Federal government had already made and concluded plans for the removal of fuel subsidies so as to attain stability and uplift the downstream in the petroleum industry.
Zainab Ahmed, the Minister of finance, budget, and National planning in an interview during the World Economic Forum session in Davos, Switzerland which was held yesterday disclosed that the government does not have enough revenue to purchase the refined product.
Because the government borrows money to purchase refined products, Zainab noted that the N3.25 trillion used for the subsidy has to be removed, which she described as a significant relief. According to her, the subsidy would have been removed a long time ago but it was delayed due to the impact of the coronavirus pandemic, as the government did not want to add more burden on the citizens.
Expressing dissatisfaction, the Organized Labour described the petrol hike as the “last kick of a dying regime”. Meanwhile, a top Labour leader who pleaded anonymity has called on Nigerians to oppose the hike and express their dissatisfaction and frustration.
