Petrol: FG claims prices not being set, anticipates availability by weekend

• Tinubu directs VP to meet petroleum minister, NNPCL boss
• NLC insists it has agreement with Tinubu to halt pump price hike
• TDF: Congress wrong, President didn’t betray anyone on fuel price
• Pump price yet to reflect market conditions, says NNPCL official

Minister of State (Petroleum) Heineken Lokpobiri said yesterday that the country has sufficient fuel supply and anticipated that products would be readily available nationwide by the weekend.

However, he said prices may be higher in some areas than others, “but we believe that as product availability increases, prices will stabilise.”

He said Nigerians must understand that the government is not setting prices. “This sector is deregulated, and we believe that with ample product availability, the price will naturally find its appropriate level.”

The minister disclosed this following a closed-door meeting at the Presidential Villa in Abuja, an apparent effort to calm public outrage over the recent fuel price hike.

President Bola Tinubu instructed Vice President Kashim Shettima yesterday to convene an emergency meeting with Lokpobiri and the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.

The National Security Adviser (NSA), Nuhu Ribadu, and the Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ogbugo Ukoha, were also present.

Briefing journalists after the meeting, Lokpobiri said, “The Vice President summoned us to brief him on the situation across the country. We must convey to Nigerians that the President empathises with their current difficulties. He is deeply concerned about the hardships faced by Nigerians, which is why he directed the Vice President to call this meeting, allowing us to reflect on the situation.”

He added that the President “is empathetic to the current situation, which is why he called for this meeting. There is enough fuel in the country to meet the needs of Nigerians. There’s no need for panic buying, and Nigerians should be aware that the government is not fixing prices.”

For his part, the NMDPRA Executive Director said, “All regulatory efforts are now focused on stabilising supply, which will have a positive impact on price stability. To achieve this, the regulator is ensuring extended operating hours at all loading depots, prompt clearance of vessels, and extended hours for truck-outs wherever safety permits.

“Additionally, we are reinforcing our support for local refiners, as increased production from them will lead to higher supply and stabilise prices. This is the regulator’s current priority.”

MEANWHILE, the Nigeria Labour Congress (NLC) insisted that it agreed with President Bola Tinubu that the pump price of Premium Motor Spirit (PMS) would not be adjusted upward.

Head of Information and Public Affairs of the Congress, Benson Upah, stated this while faulting the Senior Special Assistant to Mr President on the Print Media, Mr Abdulaziz Abdulaziz, who said there was no agreement between government and labour as a pre-condition for the N70,000 national minimum wage.

Abdulaziz had reportedly said, “I sat through the two meetings President Bola Ahmed Tinubu had with labour leaders on minimum wage. At neither of the meetings was an offer made in exchange for fuel price hike. Ajaero is once again playing his dirty politics with the emotions of Nigerians.”

Upah, however, described Abdulaziz’s statement as amusing. “We have since asked ourselves if he is suffering from selective amnesia or attention span deficit. Whatever the matter is with Abdulaziz, we stand by our statement,” he said.

Upah said, “If Abdulaziz had been at those meetings as he claimed, he should have been courageous enough to let the world know whether the President gave the labour leaders one hour to meet and resolve to either accept and allow an increase or accept N62,000. Labour leaders instead chose to meet outside the Villa and report in a week. When they came back, they were blunt and rejected the offer.

“As for Abdulaziz’s side-dig, he should stop insulting the intelligence of Nigerians as they do not need Comrade Joe Ajaero to know they have been taken for a ride and that life has never been this mean, all due to the policies of the government.”

Upah insisted that Nigerian workers are entitled to a decent, respectable life free from harassment, intimidation and starvation, irrespective of the opinion Abdulaziz holds.

“Government may have all the ultimate weapons of coercion; true power (however) resides with the people. Falsehood does not live forever,” he added.

BUT the Democratic Front (TDF) insisted Tinubu did not betray or deceive the NLC regarding fuel prices when determining the N70,000 minimum wage.

It explained that labour and the government mutually negotiated and agreed on the minimum wage.

In a statement signed by Chairman, Danjuma Muhammad and Secretary, Wale Adedayo, TDF said, “Once again, we are disappointed with the often repeated wrong postulations of the Joe Ajaero-led NLC against the government and person of President Bola Ahmed Tinubu.

“In a rather disheartening and incoherent manner, Mr Joe Ajaero signed a statement alleging that President Tinubu betrayed the Congress with the recent increase in the pump price of PMS by the NNPCL.

“The minimum wage negotiation was never debated as a condition to how much fuel would be sold. It is pertinent to state that President Tinubu never hid his desire or pretended over his preference to make the ideals and philosophy of a liberal free-market economy the focal point of his economic transformation agenda.

“He announced an end to the age-long petroleum subsidy regime in an unprecedented fashion during his inaugural speech on May 29, 2023, to herald the commencement of the end of state-controlled economic policies and protectionism in the Nigeria investment ecosystem.”

The Democratic Front said: “From our knowledge of the President’s enviable background as an experienced private sector player who majored in the oil and gas industry, we believe that he will not, for whatever reason, give personal guarantee or assurance to anybody or group, on a specific price of fuel in Nigeria, knowing fully well that in the absence of government subsidy, such prices are solely determined by the unpredictable dynamics of market forces.

“We therefore view the accusations against the President by Joe Ajaero as untrue and a ridiculous attempt to blackmail the President.

“It is all an attempt to divert public attention from a security investigation and an ongoing trial that directly links a foreigner accused of committing treasonable offences against the Nigerian state to the NLC Secretariat in Abuja.”

According to TDF, the factors that necessitated the recent hike in PMS price by NNPCL are not opaque, as the organisation has comprehensively made explanations.

It said, “We understandably note that the withdrawal of fuel subsidy by the government has compelled the NNPCL to respond to the dictates of market forces to cope with the logistics of importing refined petroleum into the country. The increase in the pump price is to accommodate the landing cost of the product.”

The group added, “We at TDF expect every responsible and patriotic organisation in the country, NLC inclusive, to focus attention on the new oil sheriff in town, that is, Dangote and other private refineries in Nigeria, to ensure that all the actions and incentives deployed by President Tinubu to encourage local refining succeed.

“This is the right path for the Joe Ajaero-led NLC to follow if truly they are sincere about reducing fuel prices in the country.”

RELATEDLY, Executive Vice President of NNPCL (Downstream) Adedapo Segun, emphasised the need for a perfectly competitive market to ensure stable fuel prices and supply in Nigeria.

He expressed concern that the current pump price does not accurately reflect prevailing market conditions.

Segun made this statement during Arise Television’s Morning Show yesterday.

“The pump price today is not market reflective. NNPCL is the sole importer of PMS in the country, which is abnormal. We should be moving towards a situation where the free market determines prices,” he said, stressing that market forces, rather than any single entity, should dictate fuel prices.

Segun clarified that NNPCL’s role as the sole importer of PMS was not a deliberate choice by the company but a response to market conditions.

“Let me put it in the proper context. NNPCL is not a regulator. We didn’t choose to be the sole importer. We don’t determine who plays in the market. We stepped in when others reduced their participation. It’s not about wanting to be monopolists,” he explained.

He also stated that achieving a stable fuel supply and price would require ideal market conditions, including a more liquid foreign exchange market.

“Market conditions need to be perfect, and there must be FX liquidity,” he said, suggesting that broader economic reforms may be necessary to address the fuel pricing issue.

NNPCL has been working closely with private refineries, such as Dangote, to ensure a steady supply of crude oil for refining.

“We have supplied about 30 million barrels to Dangote so far: 6.3 million this month, and we will supply 11.3 million in October,” Segun added.