LABOUR UNIONS REJECT PUMP PRIZE INCREASE

The unilateral increase in prices of petroleum products yesterday, May 11, 2016 by government has not gone down well with labour unions.

The increase represents the height of insensitivity and impunity and shall be resisted by the Nigeria Labour Congress (NLC) and its civil society allies.

In a Press Release by the NLC yesterday, the General Secretary of the union, Dr. Peter Ozo-Eson condemned the actions of the government.

“With the imposition on the citizenry of criminal and unjustifiable electricity tariff and resultant darkness and other economic challenges brought on by the devaluation of the Naira and spiraling inflation, the least one had expected at this point in time was another policy measure that would further make life more miserable for the ordinary Nigerian.

The latest increase is the most audacious and cruel in the history of product price increase as it represents not only about 80 per cent increase but it is tied to the black market exchange rate.

Furthermore, the process through which government arrived at this is both illogical and illegal as the board of the PPPRA is not duly constituted. In our previous statements and communiques, we had stressed the need for reconstituting the boards of NNPC and PPPRA and wean both away from the overbearing influence of the Minister of State for Petroleum Resources who has assumed the role of a Sole Administrator.

The allusion to the fact that the this increase was arrived at after due consultation with stake holders is not only ridiculous and fallacious, it goes to show that the brief meeting held today during which government was advised to shelve the idea until at least it meets with the appropriate organs of the Congress was in bad faith.

Accordingly, we urge the government to revert the prices to what they were. We would want to put everybody on notice that we shall resist this criminal increase with every means legitimate.

Already an emergency NEC meeting has been scheduled for Friday, May 13, 2016 to decide on the next line of action. Meanwhile, our affiliates, state councils and civil society allies are requested to commence mobilization immediately.”

Adding his voice to this latest impasse, Governor Ayodele Fayose of Ekiti has described the new pump price of petrol as “a demonstration of the level of hatred the President Muhammadu Buhari-led government has for Nigerians”.

In a statement issued on his behalf by Lere Olayinka, Fayose said the scarcity of petrol experienced in the last three months was deliberately orchestrated by the government to pave way for the increment.

He said the All Progressives Congress (APC) rode to power through deceit, accusing the ruling party of promising to reduce petrol price to N45.

The governor said he was expecting the reactions of those who vehemently opposed the attempt of former President Goodluck Jonathan to remove subsidy.

“When they were seeking for votes from Nigerians, they promised to reduce petrol pump price to from N87 to N45 per litre, they promised to create three million jobs per year, they said $1 will be equal to N1 and above all, they promised to pay unemployed youths N5, 000 stipend and provide one meal a day to pupils nationwide,” the statement read.

“The over 70 per cent increment is another vindication of my predictions on what to expect in 2016. It is now clear that the scarcity of petrol being experienced in the last three months was deliberately orchestrated by the federal government to pave way for the already conceived increment.

Nigerians are now left at the mercy of political liars who took over power by deception and are governing by deceit. Instead of fulfilling their promises, they have increased petrol pump price to N145 per litre, increased electricity tariffs, retrenched thousands of workers and imposed untold hardships on Nigerians.

As they did in 2012, if labour leaders do not also stand up for the people at this time, posterity will not forgive them.”

Below are throwback photos of protests against subsidy removal by the past Jonathan administration:

 

 

Photo Credit: Sahara Reporters

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About Dr. Ken

Medical Doctor, Publisher, Editor, Novelist, Playwright, Visionary Poet, Activist, Blogger
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8 Responses to LABOUR UNIONS REJECT PUMP PRIZE INCREASE

  1. Pingback: FG DEFENDS PETROLEUM PRIZE INCREASE | Footprints

  2. Bee says:

    #Copied

    With the new price regime just announced, the price of petrol is now officially lower here in the US than it is in Nigeria, an oil-producing country. I don’t care what pseudo-scientific gobbledegook defenders of the price hike advance; it’s simply unconscionable and immoral that Americans should pay less for petrol than Nigerians who produce it, especially given that the minimum wage in Nigeria is a paltry 18,000 naira monthly, which isn’t even paid regularly in most states.

    N18,000 is the equivalent of $90 — if you use the official exchange rate of 199 naira to a dollar. The minimum wage in America is $1,160 a month, which is equivalent to N231,000 — again using the official exchange rate, which we all know isn’t a true reflection of the naira’s real worth vis-a-vis the dollar. (It is over 300 naira to a dollar in the black market).

    I am not an economist and I don’t pretend to even understand economics, but I do know that any “deregulation” or “subsidy removal” that asks a person who earns N18,000 to pay more for petrol than a person who earns N231,000 is immoral and indefensible.

    Shikena!

  3. Nicky says:

    A Facebook Write up!!!

    Seemingly, many Nigerians went to school. Most got literate, somewhat. Few got educated.

    NLC has said it will challenge the “increase” in fuel price, others are asking Nigerians to “occupy” like in 2012, and, with respect to the attached picture, some asked: “was this man ignorant or he was patently and fantastically dishonest?”

    The answer is “neither.”

    In 2012, the increase in pump price of petrol was aimed at increasing government revenue in order to fund government’s consumption, despite unprecedented revenue generation.

    In 2016, the increase in pump price is aimed at increasing supply of products to retail outlets. According to the official statement released, the increased is due to independent marketers’ inability to meet their 50% supply quota because they cannot access forex at official rate (which is what N87/liter is based on) and cannot breakeven if they supply at current market rate. The PPPRA, therefore, will announce a new price putting this into consideration. The new price will “not be more than N145/liter”

    In December 2015, amids shortages in revenue, Saudi Arabia (the world’s largest oil exporter with one of the lowest pump prices in the world) hiked pump prices by 40%. Many expected Nigeria to do same. Price remained at N87. So, why the “change” in pump price?

    145/87 (new price divided by old price) = 1.667 (representing 66.7% hike)

    197 X 1.667 (official dollar rate which old price was based on multiplied by rate of hike) = 328.40.

    328.40 is approximately the market price of US$ available to importers.

    More than 50% of Nigeria’s commercial imports come from China. When the Yuan deal is implemented, the demand for dollar will drop. Dropped demand will bring about a significant drop in dollar rate.

    With planned diversification of the economy, forex revenue will be earned from solid minerals and agricultural exports. This will increase dollar supply. Increased supply will bring about decrease in price.

    It is, therefore, unlikely that US$1 will retail significantly above 328.40 — all things being equal. Don’t forget, the current arrangement is short-term, supposedly till existing refineries are functioning optimally and new ones commissioned. Hence, petrol will retail for “not more than” N145/liter.

    It’s not rocket science. It’s neither common sense. It’s simple BODMAS. If you have no idea what that is, ask a 10 year old!

  4. Dr. James says:

    Benin Electricity Distribution Company sends an estimated bill of 8,700 per month for supplying 2 hours of light when I’m leaving for work and 4 hours when I’m asleep.

    It’s all scam!

  5. Chuks says:

    Maybe some people are yet to do the arithmetic of 10 litres for their car and same 10 litres for generator set per day for 30 days excluding Nepa bills and upkeep for the families.

    That’s an average of 3k per day just for fuel alone. Then multiply by 30, that comes to 90k!!!

  6. Amaka says:

    Logical Reasoning!

    Chief Joseph is a petroleum importer. He imports 10 million liters of petrol at the cost of N95 per liter.

    He reports to the DPR that he has imported 15 million liters at the cost of N105 per liter, requesting N30 subsidy per liter.

    DPR sends Mr. Yusif, an inspection and monitoring officer, to measure and verify the authenticity of the claims.

    Chief Joseph offered Mr. Yusif a bribe of the applied subsidy in liew of 1 million liters, which Yusif reject instantly, requesting that of 3 million liters so that it can comfortably go round his bosses.

    Apparently they ended up agreeing on 2.5m liters each. The deal is struck, Mal. Yusif and his bosses ended up with N75,000,000 while Joseph, the importer gain N400,000,000 on the deal. They jointly cheated the government the sum of N175,000,000.

    Finally Chief Joseph divert 75% of the product to the black market and sell at N120 per liter to the masses. Later the government will also pay the cost of transporting 15 million liters to the allocated filling stations across the country.

    Thats exactly the case of petroleum subsidy in Nigeria.

    So isn’t it better for the government to invest those savings of hundreds of billions of Naira wasted every year on subsidy, on life touching projects?

  7. Isah says:

    If APC was so good to the extent of mobilizing people to protest fuel hike, then PDP should show their power too and mobilize people to the street. But the party is dead, fractured and divided bcos they don’t have money to share again.

    They are busy defending corruption!

  8. Umoru says:

    NLC! Bandits! Who are they trying to fool? Or do they want to increase the hardship? Oh, Labour Unions exist in Nigeria and the citizens are held captive as contract workers?

    Nonsense!!!

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