By: Ifeanyi Izeze<\/p>\n
Glaringly, the arbitrariness and public contempt in the operations of
\nthe Petroleum Products Pricing and Regulation Agency (PPPRA) under this
\ngovernment is fast becoming at best callous and at worst criminal.<\/p>\n
Severally, it has been said that The PPPRA has become a reproach to this
\ncountry as it has no business still existing particularly under the
\npresent administration that came under the cloak of integrity,
\ntransparency, and accountability.<\/p>\n
Just last week, the agency which solely exist to increase fuel price
\nwhenever the rulers want it, announced an upward review of the
\nprevailing pump price of petrol from N145 to N148.7 per litre citing
\ncost of crude oil at the spot markets which improved slightly as most
\nnations and major economies are beginning to lift the total lockdown
\norchestrated by the Covid-19 pandemic.<\/p>\n
How do you rationalise that this new price was announced even without
\nthe approval of the board of the PPPRA and the oversight Ministry of
\nPetroleum Resources and worse still at this hard time when Nigerians are
\nstill struggling with the impact of the Covid-19 pandemic and the
\nassociated lockdown of businesses and means of livelihood?<\/p>\n
If the only excuse from the government for the incessant increase in the
\nretail prices of petrol and other products is hinged on the vagaries of
\nthe international oil markets, Nigerians should brace up to pay as much
\nas N200 per litre of petrol because crude oil prices would definitely
\nappreciate from the current lockdown rates. You see where we are heading
\nto as a major oil producing country?<\/p>\n
Let\u2019s even look at it: the government citing the crash in the price of
\ncrude oil at the international market announced a downward review of
\npetrol price from N145 to N125 in March 2020.<\/p>\n
And in August, Petroleum Products Marketing Company, PPMC, a subsidiary
\nof the NNPC announced retail pump price regime of between N138.62
\n\u2013N148.50 for August.<\/p>\n
In a memo to oil marketers, PPMC said that effective Wednesday, August
\n5, the landing cost at ex-coastal transfer point for petrol is N113.70
\nper litre, while ex-depot price will be N138.62 per litre. Ex-depot
\nprice is the amount depot owners and marketers are allowed to pay to
\nlift products from NNPC depots for distribution to retail outlets across
\nthe country.<\/p>\n
To determine the retail pump price the consumers would buy petrol,
\nmarketers are allowed additional margins and incidental costs for
\nhandling the storage and transportation of the products to retail
\noutlets.<\/p>\n
As aptly said by the President of Nigerian Labour Congress, Ayuba Wabba,
\n\u201cit is unfortunate that Saidu Abdulkadir, the PPPRA boss did not even
\nfeign pretence that the government has abdicated its responsibility to
\nprotect Nigerians from the cut-throat tendencies of neo-liberal market
\nforces.<\/p>\n
\u201cIf you juxtapose the new jack-up of the pump prices of petrol and
\nother products with the recent killer electricity charges unveiled by
\nDISCOs, Nigerians cannot help but feel the heat of a potent threat to
\nrun millions of Nigerians under. It is even worse that this is coming at
\na time when our people are living on the precipice of the Covid-19
\npandemic.\u201d<\/p>\n
Recall that the last downward review in the price of petrol was at the
\nbeginning of the Covid-19 lockdown. The economic benefits of the
\nso-called \u201cdownward\u201d review were hardly enjoyed by ordinary
\nNigerians who were mostly indoors. Just as the lockdown was being eased
\nout and as soon as the inter-state travel ban was lifted, the government
\ndecided to hike petrol price. Is this move not a grand mischief and
\ndeceit?<\/p>\n
It is clear even to the blind that the crisis in Nigeria\u2019s downstream
\npetroleum sub-sector is \u2018self\u2019 nay \u201cgovernment-inflicted\u201d. The
\nrefusal by successive governments to fix the nation\u2019s three and half
\noil refineries is at the root of this problem.<\/p>\n
This is a government that campaigned they would fix the refineries
\nwithin their first year in office and build new ones within their first
\nterm in office.\u00a0 Now the government has spent over six years and nothing
\nhas happened. All Nigerians get is it\u2019s rationalisation of the
\nplethora of aberrations in their policies and programmes. Is it not
\nglaring that the Government and its NNPC simply want to transfer the
\ncost of their own incompetence and inefficiencies to the Nigerian
\npeople.<\/p>\n
When this government came into power in May 2015 the pump price of
\npetrol was N87 per litre.<\/p>\n
One of the earliest major decisions taken by General Buhari who feigned
\nto be people-oriented was in May 2016, when he increased the price of
\npetrol from N87 to N145 per litre. What was the excuse given by the then
\nMinister of State for Petroleum, Mr. Ibe Kachikwu: \u201cthe increase was
\nto balance the different prices Nigerians pay to buy the products.\u201d<\/p>\n
Did Nigerians not pay different prices depending on location and terrain
\nafter the so called price modulation?<\/p>\n
As if governance in this country is all about increasing the pump price
\nof petrol, see the regime since 2000.<\/p>\n
President Obasanjo met the price at N20 per litre but decided an upward
\nreview to N30 per litre on June 1 2000. This was later downgraded to N22
\nper litre.<\/p>\n
The same Obasanjo on January 1 2002 jacked it up from N22 to N26 which
\nwas later on October 2003 further increased to N42 per litre from where
\nit went to N50 per litre as announced on May29, 2004. The same Obasanjo
\nmoved it to N65 per litre on August 25, 2004 from where the price went
\nto N75 per litre as announced on May27 2007.<\/p>\n
Commendably, when the late President Umaru Yar\u2019dua took over from
\nObasanjo in 2007, the first remarkable decision he took was to downgrade
\nthe price regime from N75 to N65 per litre.<\/p>\n
The Jonathan government again jacked it up from N65 to N97 per litre
\nthough later reviewed it downward to N87 per litre. This was the price
\nBuhari inherited. And now barely one year into his second tenure,
\nNigerians are going to be paying between N148 and N150 per litre of
\npetrol. Nigerians should judge by themselves if this was the Mohammadu
\nBuhari thy voted for in 2015.What happened to the General\u2019s original
\npeople-oriented and communist disposition. The truth will one day come
\nout! God bless Nigeria!<\/p>\n