FG Blames Forex Problems for N145 Petrol Price

Federal government, yesterday, hiked the price of Premium Motor Spirit (PMS), also known as petrol, directing marketers to sell at between N135 and N145 per litre.

The government claimed the move became necessary because extreme difficulties faced by importers in sourcing foreign exchange.

While the Independent Marketers Association of Nigeria (IPMAN), commended the federal government on the new pump price of petrol, the factions of the Nigeria Labour Congress (NLC), rejected the increase and vowed to resist it alongside its civil society allies, calling on government to revert the hike to avoid a nationwide mass protest and industrial unrest.

But the Petroleum Products Pricing Regulatory Agency (PPPRA), the agency responsible for determining products prices in the oil sector, said the decision to allow marketers fix the price within the new price band of N145, became imperative in the face of extreme difficulties faced by importers in sourcing foreign exchange.

According to the PPPRA, to meet the consumption demand of the country, importers will henceforth be permitted to source for their foreign exchange requirements from secondary sources.

In the statement signed by Mrs. Sotonye Iyoyo, acting executive secretary, the PPPRA said with immediate effect, the new price band for PMS shall be at a maximum of N145 per litre, noting, however, that NNPC retail stations on the outskirts of major cities were advised to sell at a price lower than N145 per litre.

She said: “We are conscious of the difficulties that Nigerians have been going through in the last few months, and to ameliorate this situation, we shall continue to modulate pricing in accordance with prevailing market dynamics, thereby ensuring fair value to all citizens.”

Elsewhere, Dr. Ibe Kachikwu, minister of State for Petroleum Resources, told newsmen at the State House yesterday the increase in the price was the only way out of the exorbitant prices of between N150 to N250 which Nigerians are subjected to at filling stations across the country.

He stated that the new policy would lead to improved supply and competition and eventually drive down pump prices, as experienced with diesel.

In addition, he argued that the increased price would also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector, while it would also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.

 He, however, stated that Federal Government had articulated many social protection programmes in the 2016 budget to cushion the effect the hike might have on Nigerians.

Reacting to the increase, the Ayuba Wabba faction of the NLC vowed to resist it alongside its civil society allies, calling on government to revert the hike to avoid a nationwide mass protest and industrial unrest.

On its part, the Joe Ajaero faction, equally rejected the hike, warning that there would be massive resistance by organized labour jointly to ensure that this further injury and hardship on Nigerians does not stand.