Former Minister of Petroleum and Energy, Prof. Tam David-West, has
blasted the Federal Government for increasing the price of Premium Motor
Spirit (PMS) from N86.50kobo per litre to N145, saying it is
unjustifiable. It is nonsense.
In an interview in Ibadan, the Oyo State capital on Friday, he insisted
that petrol can be sold at N40 per litre in Nigeria.
David-West, who was widely quoted in the media that petrol could be sold
for N40 per litre under President Muhammadu Buhari prior to the 2015
general elections, raised the alarm that hidden charges made the pump
price of petrol to skyrocket, urging the government to assume
responsibility for the charges.
He identified Petroleum Equalisation Fund (PEF), demurrage, charges by
Nigerian Ports Authority (NPA), jetty and depot charges, retailer’s margin
on petroleum, transporter’s margin on petroleum, dealer’s margin on
petroleum, smuggling across borders, storage and so on as some of the
additional charges put on the price of PMS.
“When I heard the Minister of State for Petroleum (Ibe Kachikwu), saying
they smuggled our petrol across borders and that was the reason for the
increase, it is nonsense. I used the word nonsense because during my
time, we closed the borders. If I could do it, he could do it too; and it
is the same head of state (Buhari).
“We ensured there was no petrol station several kilometres to the
borders. Government would not approve fuel station that is close to the
borders. Another illogicality of that argument is if you sell petrol in
Nigeria for N150 per litre, the people across the borders are ready to pay
N160; if you sell for N200, they are ready to pay N210. So, there will
still be smuggling. So, increasing petrol price in Nigeria does not stop
smuggling,” he said.
David-West, said the reasons which the government gave for “the fuel
price increase is confusing. A government official said it is subsidy
removal, which is not. Another one says smuggling, which is untenable.
Foreign exchange (Forex) was also mentioned, which is partially tenable
because the country’s foreign exchange has gone down drastically. So, it
is so difficult now to source forex to import fuel.
“If I am into managing of oil and foreign exchange goes down, why should a
man on the street pay for it? No matter the reason, N145 per litre is not
justified. If they removed all the unnecessary additions on the price of
petroleum such as bridging or Petroleum Equalisation Fund, dealer’s
margin, transporter’s margin, retailer’s margin, storage, depot margin,
and NPA charges, petrol price will come down to N40 per litre.”
David-West stated further that the National Chairman of All Progressives
Congress (APC), Chief John Odigie- Oyegun and Minister of State for
Petroleum, Dr. Ibe Kachikwu, said the hike in fuel price was necessitated
by subsidy removal, but the Vice President, Prof Yemi Osinbajo, said it
was because of foreign exchange.
“What they are doing is embarrassing to him. Buhari has said it
repeatedly that there is no subsidy. I stand by him that there is no
subsidy as such. If you say you have come to remove subsidy, will you
remove what does not exist?
“Kachikwu, I don’t know him and I have never met him before; he is
brilliant from his CV (Curriculum Vitae). I respect him for his CV. He
has got a very beautiful CV. But sometimes, he says things that are, to
me, outrageous.
“A business man runs a business to make profit. Government should
encourage businessmen to be in business by allowing them not to run at a
loss. Government also has a responsibility to make sure that businessmen
do not exploit the people.
“Right now, we are interested more in businessmen making profit while
they (government) turned their back to common man being exploited or
suffering.”