Confusion As FG Denies Increase In Pump Price Of Petrol, Fuel Scarcity Bites Harder

metro

11 months ago

Confusion has continued to envelop the oil industry, particularly the down stream sector as the Federal Government has denied authorizing any increase in the price of Premium Motor Spirit popularly known as petrol, despite the hike in the cost of the commodity across the country.

According to Punch, this was made known by the Minister of State for Petroleum Resources, Timipre Sylva, through a statement issued by his media aide, Horatius Egua, in Abuja on Friday, where he said that President Muhammadu Buhari had not approved any price increase for petrol.

Buhari has not approved any price increase for petrol
Sylva was quoted as saying, “President Muhammadu Buhari has not approved any increase in the price of PMS or any other petroleum product for that matter. There is no reason for President Muhammadu Buhari to renege on his earlier promise not to approve any increase in the price of PMS at this time.
“Mr President is sensitive to the plight of the ordinary Nigerian and has said repeatedly that he understands the challenges of the ordinary Nigerian and would not want to cause untold hardship for the electorate.
“Government will not approve any increase of PMS secretly without due consultations with the relevant stakeholders. The President has not directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority or any agency for that matter to increase the price of fuel. This is not the time for any increase in the pump price of PMS.’’
Mischief makers trying to discredit the government’s achievements
The minister noted that what was playing out was the handiwork of mischief makers and those planning to discredit the achievements of the President in the oil and gas sector of the economy.

He added, “What is playing out is the handiwork of mischief makers and those planning to discredit the achievements of Mr President in the oil and gas sector of the economy. I appeal to Nigerians to remain calm and law-abiding as the government is working hard to bring normalcy to fuel supply and distribution in the country.’’

However, oil marketers had earlier confirmed the increase in petrol price, stating that this was one of the reasons why major marketers were dispensing the commodity at higher rates currently.

MetroBusinessNews.com (MBN) had reported that the filling stations, particularly, NNPCL’s mega stations had since reflected new prices of between MN192 and N185 per litre.

In fact, MBN gathered that before Thursday’s increment some independent filling stations were charging between N189. 50 to N250 per litre in cities like Lagos and Abuja, while in rural areas and towns, the product was going for between N250 to N350 per litre.

But, some marketers are paying depot prices of between N220 to N250 per litre from Lagos to other parts of the country, outside the cost of transportation.

In fact, amid the lingering nationwide fuel scarcity, the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Friday said the volume of products supplied to marketers have dropped by about 40 percent, a development that keeps Nigerians asking of the essence of huge subsidy payments for the said importation, while qeues keep getting longer.

IPMAN’s Deputy President, Zarma Mustapha, who made a live appearance on Channels Television’s Sunrise Daily, monitored by MBN said the country is in a complex situation owing to the “burden of subsidy that government is carrying”, which he said is no more sustainable.According to him, the volume of importation by the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of Premium Motor Spirit otherwise called petrol, has been hitting hard on the “paucity of the funds” of the Federal Government

He acknowledged the hike in price but denied any formal communication from the relevant authorities to that effect.

He said that depot prices had moved to between N220 and N250 per litre from Lagos, excluding cost of transportation.

“For the Minister of state, Sylva, to come out to deny knowledge of any approval in pump price and as well defending his principal, president Buhari, who doubles as the minister of Petroleum after hours of increment and confusion in the sector, leaves much to be desired,” says an analyst who pleaded for anonymity.

ALSO READ:Fuel Scarcity: End Not In Sight As Volume Of Product Lifted By Marketers Has Dropped By 40%

According to him, “it portends no immediate solution to the suffering of the people as this bulk passing would continue for a while and of course, governance has taken back seat for politics now, particularly as the national elections commenced next month.”

According to another analyst, “one thing is sure that, at the end of the whole saga, and as usual, the new price would come to stay as government officials would begin to rationalize it and begin to appeal to the citizens for their understanding.”