Deregulation: Ideally, Nigerians should be paying N183 per litre for petrol – FG
The government and labour leaders held a meeting on petrol and electricity prices.
ByAzeezat Adedigba September 16, 2020 4 min read
The federal government has not fully deregulated the petroleum sector and should it do so, Nigerians would be paying about N183 per litre for petrol, an official said Tuesday.

The Minister of State for Petroleum, Timipre Sylva, said this at a meeting in Abuja between a government delegation and labour leaders over the recent increase in the price of petrol.

PREMIUM TIMES reported how petrol prices rose from about N145 per litre to about N160 per litre across Nigeria with the government saying the increase was due to the deregulation of the downstream sector and the removal of subsidy on petrol.

However, on Tuesday, Mr Sylva sang a different tune. He said the government only partially deregulated the sector and a full deregulation would have led to further price increase.

“Why have we kept it at N161? Frankly speaking, let us face it and this is what I will tell you. One of the things that the president considered; he said if you take it to the full scale of deregulation, today, prices should have been around N183 because you all know this.”


The minister said government’s current intervention was in the purchase of foreign exchange for the importation of petrol. He said importers, mainly the NNPC and its subsidiaries, were still buying dollars from the government at about N391 to a dollar contrary to the prevailing market price of about N450.

Speaking on why government partially deregulated the sector, the minister said the government was spending too much on subsidy.

“The federal government spent N10.4 trillion on petrol subsidy between 2016 and 2019, while the country was losing N1 billion daily to fuel subsidy between 2016-2019,” he said.

Labour’s Position
At the meeting, labour unions said the recent increase in the prices of petroleum products and electricity tariff have erased the benefits recorded with the signing of the national minimum wage signed into law by President Muhammadu Buhari.

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President Muhammadu Buhari signed the minimum wage bill in April 2019. The National Assembly had passed the bill approving N30,000 as the minimum wage for workers on March 19, 2019 and transmitted to Mr Buhari on April 2.

President Muhammadu Buhari [PHOTO: Presidency]
President Muhammadu Buhari [PHOTO: Presidency]
The leadership of the labour unions led by the president of the Nigeria Labour Congress (NLC), Ayuba Wabba; Trade Union Congress (TUC) president, Quadri Olaleye; secretary-general of the TUC; Musa Ozigi-Lawal, president of Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo; and the president of Nigeria Union of Petroleum and Natural Gas Association of Nigeria, Williams Akporeha, stated their position during the meeting.
PREMIUM TIMES reported that President Buhari directed the minister of labour and employment, Chris Ngige, to have a dialogue with the labour unions on issues affecting the economy.

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While speaking, the president of the NLC, Ayuba Wabba, disapproved of the federal government hiking the prices of electricity and petrol without consultations with Nigerians.

He said majority of the Nigerians citizens are struggling to survive due to the high cost of living caused by the federal government’s recent policies, which include an increase in the value added tax (VAT).

“The question now is what do you have on the table to actually cushion the effect on workers and their families because they have been pushed to the wall. They are already enraged. Do you have anything for us so that we can say yes despite this challenges this is what I have for Nigerian workers that they can be able to have something that can cushion this effect for them?” he said.

He said the value of the minimum wage has been eroded with the introduction of different policies.

According to him, the federal government has transferred the inefficiency in the subsidy regime to the consumers which they have to pay through the hike in the price of products.


He appealed to the government to fix the nation’s refineries and stop lining the pockets of fuel marketers through a fraudulent subsidy regime.

“I agree with Mr President that subsidy is a fraud but do we address it or transfer it to the customers? That is where the issue is. We don’t need to transfer it to the customers. We have increased VAT, we have increased some taxes, we have increased now the fuel price and the tariff on electricity. An ordinary worker can’t pay those charges. In fact, higher-level officers are complaining seriously. This is the predicament we are in,” he said.

‘Masses are at the receiving end’
Similarly, the TUC president, Quadri Olaleye, asked the government to reverse its recent increases and policies which have been biting Nigerians hard.

“Nigerian workers are crying and the populace is also crying. Last year December we were so happy that when we signed the minimum wage agreement and Nigerian workers were happy that their lots were increased. Unfortunately, now they are crying. By (our) calculation we are losing an additional 15 percent of what we gained as a result of signing minimum wage,” he said.

“For somebody who is paid N6,666 as increment, now is losing not less than N25,000 from his income. The N6,666 is going, additional N15,000 is added,” he said.

According to him, “we have not been able to discuss labour matters since February all in the name of there is COVID-19 but people that are signing the budget, people that are sharing money on daily basis, they meet either on Zoom or physically. They meet and share those money but when they come to labour matters we have to remember that there is COVID-19.”

“The questions our members are asking is that does it really mean that the politicians represent the rich people in this country? Does it mean it is only labour that represents the poor people? Does it mean when we have an economic predicament that is when we call Nigerians that we want to hear from them but when we have surpluses we hear nothing about it?”

ALSO READ: Marketers free to sell petrol at suitable prices, PPPRA tells Nigerians
“Nigerians have never enjoyed surplus when the country has money but when we have predicaments, especially crude oil crash, then labour will be called upon, let us see how we can rescue the economy. I think it is high time everybody bears their fathers’ name.”

FG speaks
At the meeting, the minister of labour and employment, Chris Ngige, said there was an urgent need for stakeholders to resolve on how the country would survive the economic challenges imposed by the COVID-19 pandemic.

“We are faced with the new normal to survive as human species and we can only hope to build back better society that would sustain us and aid us in our quest for recovery both physically and structurally,” he said.

Mr Ngige said the COVID-19 pandemic has affected price stability and major means of production.


Mr Ngige led the government team that included Mr Sylva, minister of state for labour and employment, Festus Keyamo; minister of power, Saleh Mamman, and the minister of works and housing, Babatunde Fashola.

The problem
PREMIUM TIMES reported how electricity distribution companies hiked their tariffs from N30.23 to N62.33 per kWh for Nigerians after the federal government said it would no longer subsidise electricity consumption.

Also, the price of petrol increased from N145 to about N161 per litre.

While the federal government says it no longer has the funds to subsidise petrol and electricity, the labour unions said the government’s actions will worsen the plight of millions of Nigerians who are yet to recover from the economic impact of COVID-19.


https://www.premiumtimesng.com/news/headlines/414906-deregulation-ideally-nigerians-should-be-paying-n183-per-litre-for-petrol-fg.html

Ok

Confused government

If them like they should sell litre for 1k








Failed Government

Pls I want my own shear of THE COUNTRY MAKE I SELL AM..
Move to Australia...

Could you have said this before the election?

Lobatan..
It is just about to get worse.
This may be the clearest hint that we may still have another increase in the price of PMS before the end of this year.

But the NLC is completely lost. Doesn't know how to put the government on its toes. Doesn't know when and how to strike again.

Increase in electricity and fuel prices when the world is grappling with the effects of COVID-19, when other countries are dishing out stimulus packages and thinking of beterring the lives of their citizens, our leaders here are increasing the price of general commodities that affect even the poorest of the poor.

Very soon, the monsters they're raising will fight back.

Don't worry jare. we are the most patient & calm humans on earth. we go buy am even if it's ₦500/ltr. or are we complaining?

MajesticKris:
Pls I want my own shear of THE COUNTRY MAKE I SELL AM..
Move to Australia...

Where fuel costs 350 naira per liter.

They are still subsidising fuel....

The just raised the price to a level where they could pay subsidy on the government's pocket easily

If this is true, they are stil paying a subsidy of at least 20 naira, at most 40 naira....

The government is still scared t remove subsidy. Obviously people are still benefiting.

Let's stop the charade, if we want more investment, more refinereis, and more jobs, let them marketers set the price of fuel

Our darling daddy once said "subsidy na scam", but today...

Speaking on why government partially deregulated the sector, the minister said the government was spending too much on subsidy.

“The federal government spent N10.4 trillion on petrol subsidy between 2016 and 2019, while the country was losing N1 billion daily to fuel subsidy between 2016-2019,” he said.








My guy how much dangote use build him refinery again? When GEJ said some powerful people wont let the refineries work its now clear what he meant.

it will get more expensive for now till Dangote refinery comes up next year. de- regulation in the
midst of nearly 100% importation and current foreign exchange rate issues is expensive.

Government will no longer set the price for the sale of petrol, and no longer be responsible for paying the oil marketers, meaning Government will also no longer be owing the marketers like they used to. If oil marketers are not being owed money,they will not refuse to sell fuel, thus fuel shortages and
queuing for fuel will end. 2. The end of the government subsidy means that money can also be used to develop the country in other better ways. Stealing of/ corruption linked to subsidy money will also end. 3. The price of fuel will go up because the marketers can now sell at a price that reflects their actual cost and allows them to make profit, instead of the current government fixed price. Summary:
Deregulation will be painful on the averag Nigerian's pocket, but better for the country as
a whole.

Skankamola:
Our darling daddy once said "subsidy na scam", but today...

Speaking on why government partially deregulated the sector, the minister said the government was spending too much on subsidy.

“The federal government spent N10.4 trillion on petrol subsidy between 2016 and 2019, while the country was losing N1 billion daily to fuel subsidy between 2016-2019,” he said.








My guy how much dangote use build him refinery again? When GEJ said some powerful people wont let the refineries work its now clear what he meant.

Government is spending millions on subsidy because if they did not, prices of fuel would have been as high as 200 naira per liter since 2015.

Anyway, in a way they are paying for opposing subsidy remval in 2012, and for failing to understand how a subsidy works, and why it is necessary until they entered the hot seat.

Subsidies is one point where the corrupt elite and the poor agree...the elite get free money, the poor get cheap fuel

This administration too mumu but na the people wey vote them mumu pass.....

U all criticized the previous administration for selling petrol at the price of N85 per litre, now u are selling at N168 and u think u are even doing us a favour??

U critized exchange rate of $1 to N120, now the exchange rate is 1$ to N387 and u think u are doing great??

How much is minimum wage kwanu?? yet taxes kept increasing.
U kept collecting loans with nothing to show for it...
And to think we still have 3 more years to go with this clueless government is even more heartbreaking!!

SMH..

Thedeadman71:


Where fuel costs 350 naira per liter.

What is N350/ltr or Aus$1.23when you have minimum wage of Aus$20/hr, which translates to about Aus$4,000 regular time/month and equals about N1.2m/month minimum wage..

Dont just make comments for comments sake

LeeSantos:
Don't worry jare. we are the most patient & calm humans in earth. we go buy am even if it's₦500/ltr. or are we complaining?

Price oof fuel in

Chad : 361
Niger: 377
Cameroon:439
Benin:352

Esseite:


What is the minimum wage of Australia?

Do you earn minimum wage? 30000 a month?

Also, in australia, yoour tax would be higher than in Nigeria.

Esseite:


What is N350/ltr when you have minimum wage of $20/hr

Yeah, and Ghana , Niger, Chad and Cameroon have the same level of life as we do, aand pay much higher for fuel.

Let's face it, we have to remove this subsidy thng compeltely. Yes, high prices initally, but more investment, more competiton, aand low prices

And we can use the subsidy money for stuff like education and health

As a buharist, I will gladly pay #250 naira

Hmmm

Esseite:


Hmmm

If we had removed subsidy since 2006, by now we would have had low fuel prices, and more jobs. and more refinereis

Thedeadman71:


Where fuel costs 350 naira per liter.

And how much is their minimum wage?

Thedeadman71:


So you are earning 30000 naira monthly?

How much is Niger and Ghana's mininum wage. Ghana's own is even slightly less than ours, yet they pay over 300 naira for fuel.

Niger is poorer than we are...yet they pay 377 for fuel

Sierra leone paays over 400 naira for fuel, and their minimum wage is lower than ours.

When other oil producers are cutting subsides in this era of low oil price, why don't we?

Sometimes wen some of U raise these useless arguments it shows jus why we may neva develop as a nation. These countries U mentioned, how many of dem produce any crude talk more of producing the volume we do daily? How many of dem expands billions of dollars on a non functional refinery yearly?

obonujoker:
As a buharist, I will gladly pay #250 naira

Am sure as a GEJist in 2012 you wuld have galdly paiid 140 naira....

But no , you joined Buhari to oppose a sane decision, now see where we are....

(Don't support either man, but from your comment it is easy to see you love subsidy)

And if you voted buhari in 2015 because he promised 40 naira per liter, you don't get how a subsidy works.

Nbotee:


And how much is their minimum wage?

So you are earning 30000 naira monthly?

How much is Niger and Ghana's mininum wage. Ghana's own is even slightly less than ours(26000 NAIRA), yet they pay over 300 naira for fuel.

Niger is poorer than we are...yet they pay 377 for fuel. and their minum wage IS 23000naira.

Sierra leone paays over 400 naira for fuel, and their minimum wage is lower than ours.19000 naira

When other oil producers are cutting subsides in this era of low oil price, why don't we? We arent earning enough money to pay fr the corrupt nd evil suubsidy

N200 will be better

Lol we never see anything
These ones will manipulate you and rub it to your face
Fear APC

Thedeadman71:
They are still subsidising fuel....

The just raised the price to a level where they could pay subsidy on the government's pocket easily

If this is true, they are stil paying a subsidy of at least 20 naira, at most 40 naira....

The government is still scared t remove subsidy. Obviously people are still benefiting.

Let's stop the charade, if we want more investment, more refinereis, and more jobs, let them marketers set the price of fuel

Lmao
Keep deceiving urself

Nbotee:


Sometimes wen some of U raise these useless arguments it shows jus why we may neva develop as a nation. These countries U mentioned, how many of dem produce any crude talk more of producing the volume we do daily? How many of dem expands billions of dollars on a non functional refinery yearly?

Chad and Niger produce some crude.

Benin struck oil recently, and the price of petrol there costs more than the price of petrol in Nigeria.

Plus the amount of crude we produce yields an amount that isn't enough for the needs of a country of 200 million people.

And because of subsidy, it isn't profitable to refine fuel in Nigeria which is a big part of the reason why our refineries are in a bad state, plus NNPc spending billions it would have used to repair refineries on underrecovery to make fuel cheap.

Saudi Arabia produces five to ten times more fuel than we do. So their fuel price should be 30 naira per liter . Instead it is 160 naira per liter.

StaffofOrayan:



Lmao
Keep deceiving urself

The problem I have with Nairaland is that people on this site just love to call people they disagree with liars as if that is an argument winning point.

It's getting stale

Really

Thedeadman71:


If we had removed subsidy since 2006, by now we would have had low fuel prices, and more jobs. and more refinereis

The best the Govts could have done was to increase minimum wage by the margin of subsidy increase and let the people pay the deregulated price of fuel via the increase rather than Govt directly.. that way, Govt curbs corruption, standard of living increases, poverty scale reduces, increase custom imports to curb naira devaluing while encouraging local purchase, increase flight licenses, increase immigration policy fees..

MajesticKris:
Pls I want my own shear of THE COUNTRY MAKE I SELL AM..
Move to Australia...

Since you have decided to renounce your Nigeria citizenship. Please note that the country debt is more assets, while debt is $50 billion, asset in other the hand is $20 billion. You will need to pay Chinese government your part of the debt before your application can be guaranteed. We have assisted you to calculate your share which is $500 (N200,000) as at today. Thanks