Our reporter/ President Bola Tinubu on Tuesday assured Nigerians that there will be no increase in the pump price of petrol, even as he considers temporary reinstatement of the fuel subsidy regime.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), had asked Nigerians to expect a fuel price hike soon as a result of forex crisis and the rise in the landing cost of fuel.
This led to panic buying in some places, while at least the pump price of fuel was reviewed upwards in at least four states.
Subsequently, labour unions threatened to shut down the country if petrol price goes up again.
However, speaking through Ajuri Ngeale, his spokesman, Tinubu told Nigerians that there won’t be any increment for now.
“This morning, I have the privilege of sitting down with his excellency president Bola Tinubu. As we discussed the current unfolding situation in the country as it relates to fuel supply and demand.
“The President wishes first to state that it is incumbent upon all stakeholders in the country to hold their peace. We have heard very recently from the organized labour movement in the country with respect to their most recent threat.
“We believe that the threat was premature and that there is a need on all sides to ensure that fact finding and diligence is done on what the current state of the downstream and midstream petroleum industry is before any threats or conclusions are arrived at or issued.
“Secondly, Mr. President, wishes to assure Nigerians following the announcement by the NNPC limited just yesterday that there will be no increase in the pump price of petroleum motor spirit anywhere in the country. We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.
“We also wish to affirm that the President is determined to maintain competitive tension within all sub sectors of the petroleum industry. He is determined to ensure that our policy drawn up as well as policy implemented follows the cue that there will not be any single one entity dominating the market.
“The market has been deregulated. It has been liberalized and we are moving forward in that direction without looking back.
Meanwhile, President Bola Tinubu is considering a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates continue to soar.
According to TheCable report, There is yet no final decision, but presidency sources said the proposal is “firmly on the table” as Nigerians continue to groan under harsh economic realities following the removal of petrol subsidy in May 2023.
This is understood to be an option for Tinubu to keep the current prices, although private importers have not made a definite pronouncement on any possible adjustments.
Kenya, another African country that discarded petrol subsidy, this week reinstated a small subsidy to stabilize retail fuel prices for the next 30 days in the country.
According to Jazeera reports, the Energy and Petroleum Regulatory Authority (EPRA), Kenya’s energy regulator, said oil marketing companies will be compensated from the Petroleum Development Fund.
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilise pump prices for the August-September 2023 pricing cycle. Oil Marketing Companies will be compensated from the Petroleum Development Fund,” the statement read in part.
After taking office in September, President William Ruto removed fuel and maize flour subsidies put in place by his predecessor.
Ruto said he preferred subsidizing production rather than consumption.
The move, he said, was also aimed at cutting government spending as the government seeks to get a handle on debt repayments that have forced it to deny market speculation about a possible default.
But the subsidy cuts as well as recent tax hikes increased living costs and contributed to violent anti-government protests in recent months.
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