Shocking Parting Gift:petrol Hits N75 Per Litre

NIGERIANS got a shocking parting gift from the Obasanjo administration at the weekend: a 15 per cent fuel price hike.

Fuel stations across the country raised their pump price to N75 per litre from N65. It was the first increase since 2005, following a directive to the fuel marketers by the Petroleum Products Prices Regulatory Agency (PPPRA).

There was no fuel price increase last year when the Federal Government budgeted N200 billion for fuel subsidy. Only N50 billion was in this year’s budget.

Fuel was selling for N19 per litre when the outgoing administration came in 1999. The latest increase would amount to 295 per cent jump since 1999.

A PPPRA official who spoke on condition of anonymity confirmed the development, saying official announcement would be made after the inauguration of the Umaru Musa Yar’Adua administration tomorrow. Officials of the major oil marketing firms also confirmed the development.

The PPPRA official said the fuel price hike was approved to avoid saddling the new government with an unsustainable level of subsidy on prices.

The nation, which consumes about 36 million litres per day, imports the bulk of the fuel as only one of its four refineries (Port Harcourt) is running partially. The Warri and Kaduna refineries are down because the pipeline that feeds them with crude has been damaged by Niger Delta militants.

Oil industry sources said the recent upsurge in crude prices to about $70 per barrel had raised landing cost of refined petrol to about N95 per litre.

An analyst said the price hike, implemented at service stations without any official announcement, is likely to cause an immediate crisis for the incoming government.

In Lagos, some of the marketers, following the PPPRA directive, adjusted their pumps to reflect the change without delay.

Several service stations were shut yesterday, ahead of the announcement.

A source at one of the major marketers’ service stations said that even at the N75 per litre pump price, the station would not open because there may likely be scarcity, following the oil workers’ strike.

"The situation is unpredictable but it may be harsh," the source said.

The Obasanjo administration had been itching to fully deregulate the downstream since 2000, but could not have its way because of opposition from Nigerians, particularly labour.

Previous price hikes had triggered crippling strikes by unions, which ordered a two-day sit-at-home today and tomorrow against what it called widespread fraud at last month’s elections.

The price increase is just one of a series of far-reaching decisions by Obasanjo in the dying days of his administration.

Since the polls, he has doubled value added tax, reshuffled the military, restructured the ports, auctioned oil and mining concessions and sold the country’s largest oil refinery.

In Abuja, the long queues witnessed at filling stations last week in Abuja have disappeared, but prices varied from the official pump price of N65 per litre to N75 per litre.

However, motorists who bought fuel in the city said that they paid N75 per litre, adding that the new price was conspicuously displayed at the stations.

The motorists decried what they called "a unilateral hike" as no announcement was made on the increase to a new price of N75 per litre and blamed the government for the development.

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Obasanjo again shows his love for Nigerians by further making then poorer. After making promises in 1999 to make turn around maintainance of the refineries and wasting or stealing $900 million dollars.

He again raises the prise of fuel for the seventh time, so he and his fuel importer friends can make more money at the expense of the poor masses.

His supporters must jumping up and down for joy at this maverick parting gift.

Lets say eight gbosas for obachanjo for hi eight years of mis-rule and the sapping of the poor.
gbosa gbosa gbosa gbosa gbosa gbosa gbosa gbosa !!!!!!!!!!!!!!