Fuel Subsidy Removal: FG, Labour Meeting Ends In Deadlock As Fuel Price Hits Over N700/Litre
The meeting between the Federal Government and the Nigerian Labour Congress (NLC) over the crisis resulting from the fuel subsidy removal has ended in a deadlock as they failed to reach a consensus following the hike in petrol pump prices to over N700 from N195 per litre by oil marketers
The meeting which began at about 4pm at the Presidential Villa, Abuja, had the the spokesperson for President Bola Tinubu; Dele Alake, NNPC boss, Mele Kyari, CBN Governor, Godwin Emefiele; and former Edo State Governor Adams Oshiomhole, representing the Federal government.
The hours-long meeting was to, among other things, prevent a labour crisis following the recent increase in the petrol pump price occasioned by the discontinuance of petroleum subsidy.
The organised labour was represented by the NLC National President, Joe Ajaero; and the President of the Trade Union Congress of Nigeria (TUC), Festus Osifo.
After several hours of meeting with the Federal Government, the NLC demanded that the Federal Government return to the status quo by reversing the price of fuel before resuming negotiations with the NLC.
The National President of the Nigeria Labour Congress, Joe Ajaero, who criticized the removal of subsidy, said that the NLC has to protect the Nigerian workforce and proffer additional solutions.
Earlier on Wednesday, the Nigerian National Petroleum Corporation Limited said it had adjusted the pump price of Premium Motor Spirit to reflect the market realities. The agency, however, failed to state the new prices of petrol.
However, several retails outlets sold the product between 600 and N800 in Lagos, Abuja , Ogun and some other states.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike, pointed out that the hike in the cost of PMS would trigger galloping inflation in the country, stressing that some outlets in the South-East were currently dispensing the product at N1,200/l.
Ukadike stated,
“Once NNPCL retail stations have adjusted their pumps to reflect the new price, there is nothing you can do about it; that is the new price. As I speak with you, all of them are now selling at the new prices. The situation is so bad, that somewhere in Ebonyi State our members informed us that it is now N1,200/litre.
“We thought the President would remove the subsidy through a seamless means because the source of this petrol is the NNPCL. They are the ones subsidising petroleum products, they are the people who use their revenue to subsidise this product.’’
The IPMAN spokesperson expressed worry over the rate of increase in inflation and hardship that would come as a result of the latest hike in petrol price.
“This hike in petrol price will definitely lead to galloping inflation and will worsen the hardship already being faced by the Nigerian masses. It is not something to cheer about. It came as a surprise and in the coming days, we will see the very harsh ripple effects,”
he stated.
Meanwhile, Ukadike has called on the Federal Government and the NNPCL to give other marketers the opportunity to start importing petrol in order to create competition in the sector.
“The NNPCL is importing and has not given people the opportunity to join them in importing so as to see whether private sector operators can import the product cheaper or not. So there is no competition. In a deregulated regime, there must be competition, everyone with capacity should be allowed to import,”
the IPMAN official stated.
When asked whether other marketers could resume imports since the government had finally deregulated petrol prices, Ukadike replied,
“Marketers can import, but let me tell you some of the factors militating against this. The first is that there won’t be availability of dollars.
“You will source your dollar from the parallel market and if you are not careful in doing this, and you go into the importation of petroleum products, you might not ‘come out of it alive’ at the end of the day.
“So what we are saying is that those advantages that NNPCL has, should be shared with other major importers of petroleum products. If it is through crude buy-back, they should let us know so that independent players such as IPMAN members can come together and be able to use it in the buy-back model.’’
He added,
“For independent marketers, the most important thing is that there should be availability of petroleum products, and the government should open up the space for importers and investors to come in.”
NNPCL, the sole importer of petrol into Nigeria for several years running, confirmed the hike in petrol price in a statement and a new pricing template released to marketers nationwide.
But the move has sparked a groundswell of anger across the nation with the Nigeria Labour Congress demanding an immediate reversal of the decision.
The union also said it would hold an emergency meeting on Friday on the fuel price increase which had triggered hoarding and scarcity across the country with attendant rise in transport fares, goods and services.
The fuel price hike by the oil firm is coming 72 hours after President Bola Tinubu declared in his inaugural address on Monday that the subsidy regime had ended.
To pacify the growing anger over the situation, the FG hastily summoned the labour leaders to a meeting at the Presidential Villa, Abuja, on Wednesday evening, which eventually ended in a deadlock.
On his part, presidential spokesperson, Dele Alake, said the meeting was ‘robust’. He added that talks between both parties continues and that the Federal government is hopeful that a reasonable consensus will soon be reached.