₦airaland Forum

The leadership of the Nigeria Labour Congress and the Trade Union Congress on Monday called on the Federal Government to come out with a more realistic template for determining the right cost of a litre of petrol in the country.

Although the groups welcomed the reduction of the pump price from N97 to N87 per litre, they argued that it was far from what the cost of the product should be.

They spoke just as most filling stations still sold petrol at the old price of N97 instead of the N87 announced on Sunday night by the Minister of Petroleum Resources, Diezani Alison-Madueke.

The NLC, in a statement by its General Secretary, Peter Ozo-Eson , said the reduction was “not sufficiently deep enough.” It argued that the N10 reduction was not substantial enough as it translated to only 10.3 per cent per litre as against the 33 per cent reduction in other countries. The congress also said that the government had denied Nigerians the full benefits of the falling price of crude oil in the international market with the devaluation of the naira.

Reduction not because of elections – PDP

The Peoples Democratic Party has however said the reduction in the price of petrol is not an attempt by it to woo voters. Its National Publicity Secretary, Chief Olisa Metuh, told journalists in Abuja on Monday that the Federal Government had in 2007 taken a similar action. Metuh said, “This is not the first time that we have had decrease in the cost of petrol in this country. You will recall that when the late President Umaru Yar’Adua was in office, he reduced the pump price from N75 to N66. That was not politics. He did it in June 2007. And there was no election. “In this particular instance, it has nothing to do with the election.”

APC says slash is deceitful, belated

But the opposition All Progressives Congress described the reduction as a show of deceit and a belated effort. The party said while governments of countries which are not as economically endowed as Nigeria reduced the pump price of petrol early this month, Nigeria, was just announcing a price slash that is far below what is obtainable in other oil producing countries. It said in a statement by its National Publicity Secretary, Lai Mohammed, that a 10.3 per cent slash was “a mere tokenism at a time the price of crude oil has crashed by about 60 per cent.” The party said the pump price of a litre of petrol should not be more than N70. It added that at N87 per litre, the Federal Government was forcing Nigerians to subsidise the massive corruption in the oil sector by N17 for every litre of petrol.

http://www.punchng.com/news/petrol-price-reduction-too-small-nlc-tuc-apc/

Sounds as if they r jst criticizing the government buh its TRUE

That just the plain truth.

In fact, very small.

The thieving PhD holders in government are so used to stealing that its very difficult for them to reverse the price of petrol considerably as obtained around the world. Keep stealing. Your days in office are numbered.

FeBuhari 2015..

midolian:
Sounds as if they r jst criticizing the government buh its TRUE

Good. The price of petrol should be in the range of 40-50naira. Anything short of that is a fraud..

Burger01:
Good. The price of petrol should be in the range of 40-50naira. Anything short of that is a fraud..

Majority of the filling stations are still selling at N97 to N100

We all know he's doing it for election purpose

midolian:
Sounds as if they r jst criticizing the government buh its TRUE

Your maths is very wrong

It is not a simple direct proportion because there are other constants like cost of logistics and refining that your direct proportion does not take into consideration.

mikeansy:
Your maths is very wrong

It is not a simple direct proportion because there are other constants like cost of logistics and refining that your direct proportion does not take into consideration.

Could u be a little more specific in your analysis. Cos I knw funds have been released to INEC and they had 4 years to prepare for this election.

see example below to show your maths is not necessarily true

We need the actual breakdown cost of producing PMS to ascertain the truth but this is not a simple proportion

all lets do a simple calculation

Cost of crude 10 naira

Cost of Logistics and manufacturing and profit 15

Cost of PMS = 10 + 15 = 25

If crude reduce by 50% to 5 naira

Cost of new PMS = 5 + 15 = 20

Hence while crude has reduce by 50%; PMS has only reduced by 20% because every other variable that goes in the manufacture of PMS is still constant!

You can't assume that PMS will reduce at the same rate as crude oil while ignoring others factors of production. Especially not when we export crude and import PMS.

We are not in control of all the variables here!

The more pertinent question to be asking now is why have we
Not allowed market forces to determine pump price since all
These years? If we had, we would also be benefitting hugely
Now that the price of crude is so low as compensation for paying
So high an amount when the price was high.

Rather than do the right thing, we preferred to match to Ojota
In the name of fuel subsidy strike. Now it has come back to bite
Us. By the way, it is the same NLC, TUC and opposition parties
That refused to allow FG implement deregulation properly that is now
Telling us the pump reduction is too small. Can they all please stop
Causing confusion by pretending to fight for the masses when they
Actually have no clue of what is good for the masses in the long term.

Another one is the non-passage of the PIB which we have not
Bothered to ask our lawmakers about. Instead we are listening to
Their empty rhetorics and blaming one man for the sins of many.

GreatSoul:
The more pertinent question to be asking now is why have we
Not allowed market forces to determine pump price since all
These years? If we had, we would also be benefitting hugely
Now that the price of crude is so low as compensation for paying
So high an amount when the price was high.

Rather than do the right thing, we preferred to match to Ojota
In the name of fuel subsidy strike. Now it has come back to bite
Us. By the way, it is the same NLC, TUC and opposition parties
That refused to allow FG implement deregulation properly that is now
Telling us the pump reduction is too small. Can they all please stop
Causing confusion by pretending to fight for the masses when they
Actually have no clue of what is good for the masses in the long term.

Another one is the non-passage of the PIB which we have not
Bothered to ask our lawmakers about. Instead we are listening to
Their empty rhetorics and blaming one man for the sins of many.

There's nothing wrong with subsidizing fuel or any other product as long as the process is transparant and corruption free. Deregulate the sector as our socio-political and economic environment is now and you would have added over 75kg burden on over 75 percent of the populace.

Martins301:
There's nothing wrong with subsidizing fuel or any other product as long as the process is transparant and corruption free. Deregulate the sector as our socio-political and economic environment is now and you would have added over 75kg burden on over 75 percent of the populace.

I am also in support of continuing the fuel subsidy. It can be better managed. Fuel Subsidy is the only welfare state or tax relief Nigerians enjoy however it can be managed properly to prevent corruption. Removing fuel subsidy is a tax increase on the poor and will affect every other goods or service in the country.

The long term solution to all these problems is local refining of petrol and all other bye-products of crude.

We are better of exporting PMS and Diesel to even other African countries than exporting crude.

Am glad that we are of like mind. It is obvious that GEJ's administration cannot implement policies that will benefit majority of Nigerians. That's one reason I don't support him.

Martins301:
Am glad that we are of like mind. It is obvious that GEJ's administration cannot implement policies that will benefit majority of Nigerians. That's one reason I don't support him.

Our failures in petroleum policy can't be blamed on GEJ.

If anything the president is improving the system

We are in the process of improving local refining