[b]Nigerians to pay more for petrol in 2013

November 18, 2012 by NIYI ODEBODE, EVEREST AMAEFULE, IFEANYI ONUBA, CHUKWUDI AKASIKE, LEKAN ADETAYO, FRIDAY OLOKOR Leave a Comment



President Goodluck Jonathan
| credits: nigerianbulletin.com


There were strong indications on Friday that the Federal Government would increase the fuel price in 2013.

President Goodluck Jonathan had on Thursday in Abuja said total fuel subsidy removal was a must.

He stated that only total removal of subsidy on petroleum products would attract investors to the oil sector and end the importation of fuel.

SUNDAY PUNCH’s investigations have revealed that the President’s statement was a prelude to another partial deregulation in 2013 because the N971bn fuel subsidy budget for 2013 would not sustain importation of the product throughout the year.

The amount is N83bn or 9.35 per cent higher than the N888bn that is currently being spent in the 2012 fiscal year.

It was reliably gathered that government had opted for a phased deregulation of the downstream sector, which would lead to a price hike.

Top sources, in the oil industry, who spoke with one of our correspondents in Abuja, said the hike in fuel prices next year was “inevitable.”

The sources who pleaded not to be mentioned because they were not authorised to speak on the matter, said Nigerians should prepare for the new price regime.

One of the sources said government was considering two options in 2013.

He said, “It is either the current fuel scarcity continues or the government embarks on another partial deregulation, leading to another price increase.

“But from all indications, the government will go for the second option. Another price increase is inevitable in 2013.”

On Friday, Jonathan, through his Special Adviser on Media and Publicity, Dr. Reuben Abati, insisted that, “the downstream sector of the petroleum industry has to be deregulated; the fuel subsidy regime is not sustainable and to attract investment into the sector, there must be fair competition. The subsidy regime does not give room for efficiency.”

However, Abati, did not mention when fuel subsidy would be removed.

He said, “The President did not make any categorical statement on the time the subsidy would be removed.”

Last year, some of the marketers had invested in the downstream sector with hope that government would embark on total deregulation in January.

Such marketers have been pushing for total deregulation.

The Executive Secretary, Major Oil Marketers Association of Nigeria, Obafemi Olawore, and the Chairman, Depot and Petroleum Products Marketers Association of Nigeria, Dapo Abiodun, had in separate interviews last week, called for total deregulation of the sector.

On Friday, marketers told our correspondents that Nigerians would buy fuel at higher prices in 2013.

Chairman of the Independent Petroleum Marketers Association of Nigeria, Port Harcourt Unit, Mr. Sunny Nkpe, said since the President said fuel subsidy was not sustainable, Nigerians should get ready to pay more for fuel.

“Of course, the price of fuel will definitely increase,” he said.

Oil marketers under the Jetty and Petroleum Tank Farm Owners also faulted the N971bn budgeted for the subsidy in the 2013 fiscal year.

The group said the amount would not be enough to guarantee adequate supply of petroleum products.

The Executive Secretary, JEPTFON, Mr. Enoch Kenawa, said this during a telephone interview with our correspondent.

Kenawa said by budgeting N971bn for fuel subsidy in 2013, the Federal Government would be putting Nigerians in double jeopardy.

He said, “It (N971bn) will not be adequate. What the government is doing is putting Nigerians in double jeopardy.

“They said they are subsidising fuel, yet people can’t see the products to buy and where they have fuel, people still pay very high to get this product.

“The N971bn for fuel subsidy can never be adequate. At 35 million litres of fuel consumption per day, the money can’t be enough.”

He said rather than N971bn, the government should have provided for between N1.2tn and N1.5tn, based on current consumption pattern.

He said, “If they want to remove, let them remove it (subsidy) instead of what they are doing right now.

“Based on the demand, the amount that would be reasonable for fuel subsidy should be between N1.2tn and N1.5tn.”

The marketers attributed fuel scarcity in many parts of the country to the N888bn voted for subsidy this year, which was not enough.

They said the low budget led to inadequate supply, which caused fuel scarcity in many parts of the country.

Efforts to get the Minister of Finance, Dr Ngozi Okonjo-Iweala, to react to the marketers’ claim on the 2013 fuel subsidy budget were not successful as calls and text messages sent to her Senior Special Assistant on Media, Mr. Paul Nwabuikwu, were not replied as of the time of going to press.

But the minister had in the past faulted the marketers on the 2012 fuel subsidy budget.

Okonjo-Iweala had insisted that the N888bn was enough.

Currently, the Nigerian National Petroleum Corporation is solely responsible for the importation of fuel.

The NNPC spokesman, Mr. Fidelis Pepple, who had confirmed this to one of our correspondents on Monday, blamed marketers for the current fuel scarcity.

He said the marketers had not been selling products, which were supplied to them.

But the marketers faulted him, saying the fuel imported by the NNPC was inadequate.

In spite of the NNPC’s insistence that it had imported adequate fuel, there is a shortfall in supply.

Besides, the NNPC, which had abandoned oil pipelines, is relying on depot owners and marketers for distribution of fuel.

It would be recalled that government had in January hiked the pump price of petrol from N65 to N141 but was forced to reduce the price to N97, following mass protests organised by civil society groups.

Meanwhile, civil society groups have told the Federal Government to expect the mother of all strikes if subsidy is removed.

The Convener, Save Nigeria Group, Pastor Tunde Bakare, told our correspondent on the telephone on Saturday, that the groups were ready to protest.

He said, “The Nigeria Labour Congress has spoken that it would mobilise civil society groups to go an unprecedented strike. What Nigeria experienced in January will be a child’s play compared to what will happen this time.”

Similarly, the Executive Director, Coalition Against Corrupt Leaders, Mr. Debo Adeniran, said, “Jonathan is not going to have it easy this time. Let him continue with his plan; we won’t stop him. But, he won’t be able to stop us when the masses take to the streets and make the country ungovernable for him.”

The President, Campaign for Democracy, Joe Okei-Odumakin, also said, “What the government subsidises is corruption. We are going to use the last drop of our blood to stop the removal. The January protest will be a child’s play. They should expect the mother of all strikes. The government has taken us for granted.”

In the same vein, the Executive Director of Anti-Corruption Network and a former member of the House of Representatives, Mr. Dino Melaye, stated that, “The plan for total removal of petroleum subsidy is an invitation to anarchy. I dare the FG to remove total subsidy. Any attempt to effect total removal of subsidy, we will shut down Nigeria.”

Activist lawyer, Mr. Femi Falana, also told SUNDAY PUNCH that Nigerians won’t pay more for corruption.


[/b]

NONSENSE

Jonathan is simply saying he is tired of being president, he wants some informal way out. No be small thing.

Jonathan why are you hell-bent on destroying Nigeria? History will never forgive you for the hardship you subjecting poor Nigerians. We need God to "Abachalize" this man before he kills more Nigerians with forced inhuman policy.

Lord!!!! Please, hear our cry.

Baba_Eleko: Jonathan why are you hell-bent on destroying Nigeria? History will never forgive you for the hardship you subjecting poor Nigerians. We need God to "Abachalize" this man before he kills more Nigerians with forced inhuman policy.

Lord!!!! Please, hear our cry.

What do you mean by Lord pls hear our cry? Why cant Nigerians face reality? When in 2011 GEJ was freely paying subsidy, fuel was available at N65 per litre everywhere(was even sold for N64 in some places), the total subsidy bill shot up to N2trillion. Some persons abused the process, while others smuggled fuel to other countries but fuel was undeniable available EVERYWHERE in the country. Instead of Nigerians to show understanding of govt's predicament, ALL HELL WAS LET LOOSE. Mischief makers went to town. Rejected politicians saw that as an opportunity to regain prominence. Some said GEJ used all the N2trillion to feed his wife, others said he bought new houses all over the world and married new wives, while most maintained he used the money to finance election. These IDIOTS forgot so soon how FREELY they bought fuel at govt subsidized price of N65 per l. Now that govt corrected that and tightened the noose on fuel subsidy regime, everyone is complaining. I HATE hypocrites! I HATE persons who refuse to face reality! I HATE persons who cannot think for themselves. Niger delta and Igbo FREE OIL MONEY cannot feed 165 million mouths. It was because of this Niger delta and Igbo FREE OIL MONEY that Gowon and Awo starved 2million women and children to death.

^^
bla bla bla

too much of wet igbo is bad 4 d brain

I see some FOOLS are calling for military coup. These FOOLS think we lack memory. The think we've forgotten our history. They would have preferred a situation where one almajiri solder seize power in Aso Rock and immediately replace all the 36 state governors with 36 almajiri solders. The 'new saviours' will then preside over the SHARING of Niger delta and Igbo oil money. 90% will be voted for the north (which by the way will mostly be shared by the elites there and siphoned abroad) and 10% for the south. All these CRIMINALITY will happen under guise of replacing 'corrupt' democratic govt. This is our history and we CANNOT FORGET. These FOOLS must think Nigerians are as foolish as they are. Can someone name one military govt that did not increase fuel price? From Gowon down to the last military govt- Abdusalam- all increased fuel price. When then did increase in fuel price become a reason for regime change? Okay may be the challenge is how dare a Niger delta man increase fuel price too? Anyway, let it be made clear that the days of military rule in Nigeria are GONE FOREVER

Abacha increased fuel price from N5 per litre to N11 per litre. For those who cannot connect with the implication of such MASSIVE increment, it is like increasing fuel price from N100 per litre to N220 per litre today. Heaven did not fall, nobody talked about counter military coup or making the country ungovernable. To make the ATROCITY go full circle, Abacha appointed Buhari to manage the savings made from that HURRICANE as PTF chairman. Buhari took the opportunity WITH BOTH ARMS and deployed the resources (Niger delta and Igbo oil money) to develop mainly the north(northwest especially). All these ATROCITIES happened in this country and the rest of Nigeria stood and watch as these UGLY and DASTARDLY events unfolded. This is OUR HISTORY, we've not forgotten and we CANNOT forget

Nigerians are already paying more for fuel and it can't go more than what is presently obtainable, from the above report "It was reliably gathered that government had opted for a phased deregulation of the downstream sector, this is sure the best way to go rather than a total subsidy removal, the Government only need to ensure that palliative measures are put into place to cushion the effect of the temporary burden the phased subsidy removal might placed on the citizens.

Maxymilliano: Nigerians are already paying more for fuel and it can't go more than what is presently obtainable, from the above report "It was reliably gathered that government had opted for a phased deregulation of the downstream sector, this is sure the best way to go rather than a total subsidy removal, the Government only need to ensure that palliative measures are put into place to cushion the effect of the temporary burden the phased subsidy removal might placed on the citizens.

Is there anything like phased deregulation? What the government intends to do is increase in petroleum product prices so the term "partial Or phased deregulation" is wrong and meaningless. China, a largely importer of crude oil recently reduced the prices of petroleum products due to the decline in the prices of crude oil in international market but Nigeria with abundant crude oil is attempting to hike prices of fuel. The attitude of government transferring part of its burden to consumers is insensitive. Modalities for deregulation can be set in place for it to commence in the nearest future while government try to keep the prices stagnant for the time being because there is no way government will provide adequate palliative measures between now and Jan of 2013

take dat: Is there anything like phased deregulation? What the government intends to do is increase in petroleum product prices so the term "partial Or deregulation" is wrong. China, a largely importer of crude oil recently reduced the prices of petroleum products due to the decline in the in the prices of crude oil in international market but Nigeria with abundant crude oil is attempting to hike prices of fuel. The attitude of government transferring part of its burden to consumers is insensitive. Modalities for deregulation can be set in place for it to commence in the nearest future while government try to keep the prices stagnant for the time being because there is no way government will provide adequate palliative measures between now and Jan of 2013

.

What people actually clamoured for is subsidy removal with human face, and that's what phased deregulation connote. Like I said yesterday, subsidy removal is synonymous to price increase, it is not that government delibrately set out to increase fuel price.

What we should talk about is tha palliatives and the appropriate measures to adopt, the present measure is not really having the desired effect because State governors who are also getting their share of the SURE-P fund don't utilized the funds for the purpose it was set up.

If a State like Niger State could save up to 2.5B from its share of the SURE-P disbursement, what will you have to say about other States? Some governors even divert their own share of the fund into procuring buses to ease the transportation system in their respective State but they presented the buses as part of own development agenda and thereby denying the Federal Government from sharing in the glory and also denying the citizen the right to know the source of the fund.


Like we both agreed, Subsidy regime is a necessary evil than need to be exorcised from the system, let's wait and see how government will go about the whole episode.

Sincere 9gerian:
What do you mean by Lord pls hear our cry? Why cant Nigerians face reality? When in 2011 GEJ was freely paying subsidy, fuel was available at N65 per litre everywhere(was even sold for N64 in some places), the total subsidy bill shot up to N2trillion. Some persons abused the process, while others smuggled fuel to other countries but fuel was undeniable available EVERYWHERE in the country. Instead of Nigerians to show understanding of govt's predicament, ALL HELL WAS LET LOOSE. Mischief makers went to town. Rejected politicians saw that as an opportunity to regain prominence. Some said GEJ used all the N2trillion to feed his wife, others said he bought new houses all over the world and married new wives, while most maintained he used the money to finance election. These IDIOTS forgot so soon how FREELY they bought fuel at govt subsidized price of N65 per l. Now that govt corrected that and tightened the noose on fuel subsidy regime, everyone is complaining. I HATE hypocrites! I HATE persons who refuse to face reality! I HATE persons who cannot think for themselves. Niger delta and Igbo FREE OIL MONEY cannot feed 165 million mouths. It was because of this Niger delta and Igbo FREE OIL MONEY that Gowon and Awo starved 2million women and children to death.

you are a very big phaggot and so unintelligent. You must be mard. I won't even waste brain power explaining anything to you.

Punch just dey carry wetin we don announce since?

Fuel Scarcity Is A Plot My Jonathan Government To Increase The Price

https://www.nairaland.com/1051039/fuel-scarsity-plot-jonathan-remove

Ride on GEJ!
Remove the subsidy.
Revolutions always need a trigger.
So the prophecy that there would be elections before 2015 is already playing out.

Get rid of CORRUPTION! That's what Nigeria and Nigerians want!

You can't "kill" reports indicting your friends, waste Billions on invisible projects, send your wife abroad to "rest", share federal funds to criminals under the excuse of "na their oyel", preside over an evil government that closes its eyes to despoiling of the polity then ask poor innocent people to pay more! If we see such as diezani, Farouk Lawan, otedola jailed and monies recovered, people will listen to you.

By the way, to the dude who keeps saying "niger-delta and igbo" oil, this is ONE country! Except it breaks up, it is NIGERIAN OIL

Ofcourse Nigerians should pay more. After allowing so much waste, for so long, what did Nigerians expect to happen?

Sincere 9gerian:
What do you mean by Lord pls hear our cry? Why cant Nigerians face reality? When in 2011 GEJ was freely paying subsidy, fuel was available at N65 per litre everywhere(was even sold for N64 in some places), the total subsidy bill shot up to N2trillion. Some persons abused the process, while others smuggled fuel to other countries but fuel was undeniable available EVERYWHERE in the country. Instead of Nigerians to show understanding of govt's predicament, ALL HELL WAS LET LOOSE. Mischief makers went to town. Rejected politicians saw that as an opportunity to regain prominence. Some said GEJ used all the N2trillion to feed his wife, others said he bought new houses all over the world and married new wives, while most maintained he used the money to finance election. These IDIOTS forgot so soon how FREELY they bought fuel at govt subsidized price of N65 per l. Now that govt corrected that and tightened the noose on fuel subsidy regime, everyone is complaining. I HATE hypocrites! I HATE persons who refuse to face reality! I HATE persons who cannot think for themselves. Niger delta and Igbo FREE OIL MONEY cannot feed 165 million mouths. It was because of this Niger delta and Igbo FREE OIL MONEY that Gowon and Awo starved 2million women and children to death.

saliently coating a matter that concerns all Nigerians with tribalism just disrobed you as a senseless individual whose right to rightful thinking has been purchased. This is a typical laptop goons strategy - introduce tribalism, if that doesn't wrk creep in religion, if that fails blame it on Buhari and the opposition. Am sure you think Nigerians are like u who can't see beyond the screen of your laptop and who can't think beyond the amount you are paid to proudly display folly. No one is against fuel subsidy removal but what we are saying is that we can't pay more for corruption.