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  • No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

    No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

     

    The Nigerian National Petroleum Corporation (NNPC) says it will maintain the current ex-depot price of premium motor spirit (PMS), better known as petrol, until the end of negotiations with organised labour.

     

    Kennie Obateru, Group General Manager, group public affairs division of NNPC, disclosed this in a statement on Friday.

     

    This development comes after Mele Kyari, NNPC General Managing Director (GMD), said the NNPC can no longer bear the cost of subsidy on its books.

     

    Kyari had said the NNPC can no longer bear the burden of underpriced sales of petrol, adding that the market price needs to be implemented.

     

    He said NNPC pays between N100-120 billion a month to keep the pump price at the current levels.

     

    In the statement, Obateru said although the NNPC currently bears the burden of petrol subsidy, current price will be maintained at N162 until ongoing engagement with the organized labour and other stakeholders are concluded.

     

    He said the NNPC has no intention to preempt ongoing engagement with labour by unilaterally increasing the ex-depot price of petrol.

     

    Obateru said the NNPC has made arrangements for robust stock of petroleum products in all its strategic depots across the country to keep the nation well supplied at all times.

     

    He urged petroleum products marketers to desist from arbitrary price increase or hoarding of petrol.

     

    The spokesman also warned against panic buying, stressing that NNPC was committed to ensuring energy security.

     

    In February, Timipre Sylva, minister of state for petroleum resources, had warned Nigerians to get ready to bear the pains of increased petrol pump price as crude oil prices climbs above $60 per barrel.

     

    The increase in the price of crude oil bodes well for the Nigerian economy as this will boost the county’s revenue needed for the implementation of the 2021 budget, improve crude oil receipts and consequently bolster foreign exchange inflows.

     

    However, the prolonged high crude prices would ultimately feed into a climb in petrol’s landing cost — meaning an increase in fuel price. This would further weaken the purchasing power of Nigerians who are already battling with high inflation, unemployment and stuttering economic growth.

  • FG, Labour To Consider Electricity Tariff, Fuel Price Reports Feb 22

    FG, Labour To Consider Electricity Tariff, Fuel Price Reports Feb 22

    The Federal Government and the organised labour will reconvene on February 22 for the consideration of the reports of the bipartite technical committees on fuel price and electricity tariff.

     

    The Minister of Labour and Employment, Senator Chris Ngige, disclosed this Monday night while briefing journalists after a bipartite meeting between the FG and the organised labour at the Banquet Hall of the Presidential Villa, Abuja.

     

    Ngige said they received and adopted the report of the Technical Committee on Premium Motor Spirit Pricing Framework, while that of the Electricity Tariff Committee was expected in a week’s time.

     

    He explained that the organised labour requested for some time to subject the report on PMS pricing to their organs for further investigation.

     

    “It is a technical report, so they needed further investigation of the report by their own technical research team. The Technical Committee on electricity tariff has not finished. We expect the report in a week’s time. So, cogently, we are reconvening on 22nd of this month to take both reports,” Ngige noted.

     

    The report of the Technical Committee on PMS Pricing was presented at the meeting by the Chairman of the Committee, Onochie Anyaoku, a former Executive Director, Refineries Operations and Petrol Pricing in the Nigerian National Petroleum Corporation.

     

    Anyaoku explained that the committee at its meeting on December 16 developed guiding principles and a work schedule, distinct from the primary function of the Petroleum Products Pricing Regulatory Agency to develop a transparent methodology and a template that will serve as the guide on realistic PMS pump price and benchmark all pricing elements of the PMS pricing template with neighbouring countries.

     

    He stated, “Based on extensive review of the pricing framework and in line with the terms of reference of the committee, the following recommendations were proposed and adopted:

     

    “PPPRA to convene periodic meetings with PPMC and other importers to ensure actual cost of supply reflective determination as an interim solution.

     

    “NLC, TUC, PENGASSON and NUPENG to witness the transparent determination at the periodic meeting.

     

    “PPPRA frequently monitor data of Rotterdam supply chain values. This should continue to form the basis of price determination until the West African basket is liquid and transparent enough to warrant its adoption in the pricing template.

     

    “All importers including NNPC to adopt the same forex window used by PPPRA to ensure alignment and accurate pricing. PPPRA board to adopt weighted average as the basis of determination.

     

    “Government to enforce immediate collection of NPA and NIMASA charges in naira to reduce pressure on forex demand and pump price hike.

     

    “To develop adequate communication strategy on the necessity of deregulation and the benefit to the people, to create public awareness and gain acceptability of deregulation, which will reduce the pressure on labour to react to fuel increase.”

     

    “Deregulation is a huge change in national policy but highly desirable in this stage of our national development policy, for which its implementation requires trust building steps and commitment to visible frugal spending by government.”