By our reporter
On a day that Nigeria Labour Congress (NLC) grumbled loudly over the deleterious effects of high petrol price on workers and the masses and issued an ultimatum to Federal Government (FG) on petrol, FG today pegged the amount payable on the vital product at N1,350 a litre across the country.
Additionally, government announced a 30-day discount on petrol bought at all retail outlets run by its oil behemoth, Nigeria National Petroleum Company (NNPCL).
The FG clarified that the discount was not a subsidy, but its way to assist public transportation bring down fares for the benefit of the public.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made these announcements during a press briefing on petrol prices and subsidy-related issues in Abuja, the Nigeria capital.
According to him, the arrangement was designed to keep petrol prices stable, stressing that it was neither a subsidy nor a form of price control.
Only yesterday (Wednesday, 7 October), NLC rose from a joint meeting of its powerful National Executive Council (NEC) and Central Working Committee (CWC) and today announced a 14-day ultimatum to FG to revert petrol price to the 2024 price as, according to it, the multiplier effects of the current rate, hovering around N1,500, posed “an existential threat” to the welfare of workers and the suffering masses.
Labour warned government that if it failed to revert within the stated timeframe, NLC would be compelled to take “remedial steps” to protect proletariat interest.
Industrial unrest which could shut down the economy has traditionally been one of Labour’s effective tools in times of welfare battles against government.
Though FG did not say so, but keen observers and analysts of government business interpret FG’s reaction as a concession on the heels of NLC’s threat.
It remains to be seen if the announced concessions are acceptable to NLC.
Oyedele said: “We are introducing price modulation. The government is negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol to keep the price stable.
“When costs rise above the ceiling, refineries and importers will carry the shortfall and recover it later. This is neither a subsidy nor price control.”
The Minister further revealed that under the proposed arrangement, refineries and importers would absorb any costs above the agreed ceiling and recover the difference later.
He equally announced plans for the forward sale of crude oil to domestic refineries as part of efforts to shield petrol prices from volatility in the international market.
According to him, the arrangement would allow refiners to plan their operations and provide greater certainty over prices.
30-Day Discount
Oyedele said the FG is offering a discount on petrol dispensed by the NNPCL for the next 30 days.
He stressed that the discount is not a subsidy, but an arrangement by government to sell the petrol at affordable cost.
“We are offering a discount on petrol dispensed by NNPC Limited for the next 30 days in the first instance, with priority for public transporters nationwide. So, it’s not a subsidy, the government is just saying we sell to you at cost,” he said.
