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Fri, Mar

Fuel Price Hike: NLC Threaten Strike, As Marketers Sell Product For N161 Per Litre

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The Nigerian Labour Congress (NLC) has kicked against the increase in the price of Premium Motor Spirit, PMS also referred to as petrol by the Federal Government from N148.50 to N151.56 per litre. The NLC President, Comrade Ayuba Wabba, made their position known while speaking to newsmen yesterday in Abuja. Accordingly, the Pipeline and Product Marketing Company, PPMC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC revealed in a statement that the new product price adjustment is with effect from 2nd September 2020.

Recall on August 5th, the price of PMS was increased from N143.50 to N148.50 per litre.

Consequently, it was revealed that filling stations in Abuja have immediately complied with the increase and are currently dispensing fuel at N161 per litre.

According to Wabba, the NLC and the Nigerians at large were greeted with shock upon receiving the news of the fuel increase especially now that Nigeria is facing more of the economic down tune.

In his statement, “It is like Nigerians are being taken for a ride.

“The increase in the price of petroleum is like adding salt to injury.

“The increase in the price of petroleum has happened now more than three times in three months.

“Only yesterday they hiked the tariff of electricity.”

The NLC president also laments on the directive of the Central Bank of Nigeria directing Banks to reduce the interest rate on savings which he opined mostly takes its toll on the common man.

He, therefore, said the organised labour reject the increase in the fuel hike in a stronger term. He said, “At the end of the day, Nigerians are becoming poorer and poorer. “In fact, many people are already on the edge. “Many workers are already on the edged.

“Certainly, we cannot guarantee industrial peace and harmony, and we will have to call our organs and we will have to also react, but we reject it in its entirety. “They have betrayed the trust of Nigerians.

In his reaction, Prof. Uche Uwaleke, a Professor of Finance and Capital Market, Nasarawa State University while speaking with newsmen said, the new price will heighten inflation pressure in the country.

Uwaleke added this is a breeding ground for inflation.

He explained that as the crude oil price recovery in the international market has necessitated a hike in domestic pump price. Subsequently, Naira devaluation would follow, the Prof. Added.

He further stated that the alternative to the hike in the price would have been for the government to subsidize, however, there was no provision for that in the year 2020 budget.

Currently, the government is indebted hugely with borrowed money, it cannot further subsidize anything as it would make no sense economically, Uweleke added.

Therefore, he suggested that the only way out is to pass the petroleum Industry bill into law to give way to private investors to invest in refining the product domestically.

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