This is coming as oil price, yesterday, soared to $67 per barrel, a development that could further increase retail price of petrol, although it is positive for the Excess Crude Account and the 2021 budget.
An attempt to increase the pump price in December last year met deadlock, as labour unions dragged government to standstill. The Nigerian Labour Congress and the Trade Union Congress were furious over repeated hikes in petrol price, and dragged the Federal Government to a dialogue, where NNPC agreed to slash N5 from N167.44, a development which the Minister of Labour and Employment, Dr. Chris Ngige, said would bring down the price of petrol to N162.44K.
He also noted that, with the eroding purchasing power of an average Nigerian while inflation continues to accelerate, the implications of pump price increase would be far-reaching.A Professor of Energy Economics, Adeola Adenikinju, advised the governors, who are also struggling to run their state as financial pressure mounts, to back down on temptations that would lead to reintroduction of subsidy. Over N10.7 trillion has been paid on the scheme in the last 10 years.
According to him, since government has already removed the subsidy, the governors must consider necessary palliatives to cushion effects of the increase of petroleum products price on the populace. Executive Director, Civil Society Legislative Advocacy Centre , Auwal Musa said citizens are the ones paying subsidy to government on its gross inefficiency in managing the downstream sector in Nigeria. He said there was no point in giving the NNPC any advantage, whether comparative or competitive, over other petroleum products marketers in terms of access to foreign exchange, stressing that a level playing field for all necessary.
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