With the pump price of Premium Motor Spirit (PMS) popular in the streets as petrol, hovering around approximately N1000-N1300 per litre, concerns are mounting about the viability of fuel subsidies in Nigeria.

Energy policy analyst, Adeyemi Adeoye, has underscored the critical role of the Nigerian National Petroleum Company Limited (NNPC Ltd) in this issue, shedding light on who bears the subsidy costs.

He shared his views on TVC News on Friday.

Biztellers reports that the pump price of petrol has risen from below N200/litre at at May 29, 2023 to around N1300/litre as at September 20, 2024, with little variations depending the part of Nigeria, consumers are buying from.

Read More: Fuel Pricing Should Serve Public Interest, Not Profit — Yemi Adeoye

He stated, “Only the NNPC can engage in negotiations of this nature. Their partnership with the Dangote Refinery gives them leverage to negotiate from a position of strength.”

Adeoye highlighted that while the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers lack significant influence over prices, the Dangote Refinery prioritizes profitability.

According to him, this makes the NNPC’s negotiations vital, as they are legally required by the Petroleum Industry Act to ensure fuel availability across the country and prevent long queues at gas stations.

Adeoye said, “It is only NNPC that could have gone into that type of negotiation because NNPC is coming to the table from a position of strength because they have a partnership with the Dangote Refinery, and they have other businesses they are supplying crude to, so they can come and say, ‘Look, this has to be this way.’

“The IPMAN and the other marketers cannot do that because Dangote is a profit-making organization; it is not a charity organization. So, the only thing that is important to the Dangote Refinery is to make a profit, which is the same thing that is important to any business.

“So, the NNPC went into these negotiations because it also understands that it is the last resort. In terms of fuel distribution in the country, NNPC is mandated by the Petroleum Industry Act to make sure that there are no queues in the country. So, even if they don’t want to do it, the law mandates NNPC as the supplier, the last resort, to make sure that there is petroleum product across Nigeria.

“That negotiation is such that NNPC took all the calculations in and said, ‘This is a fair pricing that we know we can withstand.’

“Because what NNPC was paying out, which you might call a subsidy or under-recovery, NNPC was paying the difference on behalf of the government, which is under the directive of the president, who has also said he wants to see this situation totally resolved.

“That was why he directed the NNPC to make sure that crude oil to the Dangote Refinery is sold in Naira, because NNPC produces the crude in dollars, and it has to be sold to the Dangote Refinery in Naira, which is good faith.” he added

Ukraine has implemented restrictions on Telegram for government, military, and security personnel, citing national security threats associated with the app, founded by Russian-born Pavel Durov.

The National Security and Defence Council announced in a statement on it’s Facebook page that these limitations will affect all government agencies, military units, and critical infrastructure facilities.

The council emphasized that this measure is essential for protecting national security.

Read Also: Russia Frustrates Ukraine’s Largest Drone Strikes On Moscow

It reads, “The National Security and Defence Council decided to restrict the use of Telegram in government agencies, military formations and critical infrastructure facilities. It is a “matter of national security.”

More to follow…………. 

The Nigeria Labour Congress (NLC) has expressed strong disappointment over the recent increase in fuel prices, accusing President Bola Tinubu of betraying the labour movement after negotiations regarding a new national minimum wage.

At the opening of the ‘Minimum Wage Implementation Workshop, Southern Zone’ in Lagos, NLC President Joe Ajaero stated that the new petrol price has severely undermined the anticipated benefits of the forthcoming N70,000 minimum wage.

He emphasized that rising fuel costs are pushing workers into deeper hardship, counteracting any advantages the minimum wage was meant to provide.

Read Also: NLC Snubs Tinubu’s Fuel Price Tour Offer, Says It Smells Like Bribery

Ajaero argued that organized labor was misled into accepting the N70,000 minimum wage under the belief it would prevent further fuel price increases.

“We were betrayed by President Tinubu. The agreed minimum wage was intended to alleviate the effects of subsidy removal, but the new petrol prices have erased any potential benefits,” he said.

He highlighted the government’s strategy of using distractions and unfounded accusations to weaken union resolve.

“There is a tactic to distract us by alleging cybercrime and terrorism, which only allows the fuel price issue to persist,” Ajaero noted.

Recalling his discussions with President Tinubu during negotiations, Ajaero described the intense pressure labor leaders faced.

“The President gave us an ultimatum to accept a deal that would raise the minimum wage to N250,000 if we agreed to the fuel price hike. We rejected it, fully aware that it would worsen the economic situation for the country.”

Ajaero further criticized the government’s suggestion to compare fuel prices in neighboring West African countries, where petrol reportedly sells for N1,700.

“The President wanted us to consider prices in countries like Cameroon, but we made it clear that the real issue lies in unchecked smuggling at our borders,” he said.

In conclusion, Ajaero stressed the ongoing struggles faced by the labour movement, particularly against private sector employers who continue to resist the N70,000 minimum wage.