₦airaland Forum

Fuel price hike is unjustified –David West
— 21st May 2016
■ Insists petrol can sell for N40 per litre
FROM OLUSEYE OJO , IBADAN
FORMER Minister of Petroleum and Energy,
Prof Tam David-West, has blasted the Federal
Government for increasing the price of
Premium Motor Spirit (PMS) from N86.50kobo
per litre to N145, saying it is unjustifiable. It
is nonsense.
In an exclusive interview with Saturday Sun
in Ibadan, the Oyo State capital on Friday, he
insisted that petrol can be sold at N40 per litre
in Nigeria.
David-West, who was widely quoted in the
media that petrol could be sold for N40 per
litre under President Muhammadu Buhari
prior to the 2015 general elections, raised the
alarm that hidden charges made the pump
price of petrol to skyrocket, urging the gov­

ernment to assume responsibility for the
charges.
He identified Petroleum Equalisation Fund
(PEF), demurrage, charges by Nigerian Ports
Authority (NPA), jetty and depot charges,
retailer’s margin on petroleum, transporter’s
margin on petroleum, dealer’s margin on
petroleum, smuggling across borders, storage
and so on as some of the additional charges
put on the price of PMS.
“When I heard the Minister of State for
Petroleum (Ibe Kachikwu), saying they
smuggled our petrol across borders and that
was the reason for the increase, it is
nonsense. I used the word nonsense because
during my time, we closed the borders. If I
could do it, he could do it too; and it is the
same head of state (Buhari).
“We ensured there was no petrol station
several kilometres to the borders. Government
would not approve fuel station that is close to
the borders. Another illogicality of that
argument is if you sell petrol in Nigeria for
N150 per litre, the people across the borders
are ready to pay N160; if you sell for N200,
they are ready to pay N210. So, there will still
be smuggling. So, increasing petrol price in
Nigeria does not stop smuggling,” he said.
David-West, said the reasons which the
government gave for “the fuel price increase
is confusing. A government official said it is
subsidy removal, which is not. Another one
says smuggling, which is untenable. Foreign
exchange (Forex) was also mentioned, which
is partially tenable because the country’s
foreign exchange has gone down drastically.
So, it is so difficult now to source forex to
import fuel.
“If I am into managing of oil and foreign
exchange goes down, why should a man on
the street pay for it? No matter the reason,
N145 per litre is not justified. If they removed
all the unnecessary additions on the price of
petroleum such as bridging or Petroleum
Equalisation Fund, dealer’s margin,
transporter’s margin, retailer’s margin,
storage, depot margin, and NPA charges,
petrol price will come down to N40 per litre.”
David-West stated further that the National
Chairman of All Progressives Congress (APC),
Chief John Odigie- Oyegun and Minister of
State for Petroleum, Dr. Ibe Kachikwu, said
the hike in fuel price was necessitated by
subsidy removal, but the Vice President, Prof
Yemi Osinbajo, said it was because of foreign
exchange.
“What they are doing is embarrassing to him
Buhari has said it repeatedly that there is no
subsidy. I stand by him that there is no
subsidy as such. If you say you have come to
remove subsidy, will you remove what does
not exist?
“Kachikwu, I don’t know him and I have
never met him before; he is brilliant from his
CV ( Curriculum Vitae). I respect him for his
CV. He has got a very beautiful CV. But
sometimes, he says things that are, to me,
outrageous.
“A business man runs a business to make
profit. Government should encourage
businessmen to be in business by allowing
them not to run at a loss. Government also has
a responsibility to make sure that
businessmen do not exploit the people.
“Right now, we are interested more in
businessmen making profit while they (gov­
ernment) turned their back to common man
being exloited or suffering.”

naijapips02:
this man needs a wailers form. lalasticlala do you still have any left?

naijapips02:
this man needs a wailers form. lalasticlala do you still have any left?

KissCODE:
Nigerians are comedians. Kachikwu that has to deal with petrol issue told u that they removed subsidy and you dont believe him but you believe lairs who know nothing except what they were told.

Osinbajo is a law and does not work with NNPC.
Buhari is traveling all over the world and only rely on reports he sees on his table when he comes back.
Buhari is defending the lies they told us against GEJ. But Kachikwu is not a politician and he says it the way it is.

Tam David West... I am still ashamed of u cos of this fuel price hike. I didnt know u are like this.

iflywithbuhari:
He is a shameless old man.

idupaul:
When he made this same statement before the elections and helped win millions of votes for Buhari he wasn't shameless ..months down the line he make the same statement and you call him shameless. .