The All Progressives Congress Presidential Campaign Organisation (APCPCO) has described Sunday night sudden slash in the pump price of premium motor spirit (petrol) as a panicky political measure far too short of the people’s expectation and contrary to the 50 percent relief suggested by the Buhari Team.
Mallam Garba Shehu, Director of Media and Publicity of the APC Presidential Campaign said in a statement in Abuja on Monday that “the Jonathan-led PDP government is beginning to listen to public outcry about bad governance, extortion and exploitation of the Nigerian masses in the oil sector where billions of naira are daily being ripped off the pockets of the common men and women through inaccurate pump prices of petrol, diesel and kerosene, despite the dwindling world market prices of these products.”
Shehu also faulted both the decrease ratio of N97 to N87 and the timing of the announcement by the Federal Government as “politically motivated, ill-timed and too little, too late.”
He noted that “the PDP has run out of ideas for the presidential campaign and has resulted to raking straws from inertia ponds,” adding “this measure is not different from the President’s belated visit to a few places in the North East, a region which has been ravaged and devastated by Boko Haram’s brigandage, a situation to which the number one citizen seemed to be oblivious of until recently.”
“The oil price decline is 55% and the cut in the pump price is 11%. The argument is that devaluation which is approximately 10% should be factored in. However the timing and the inadequate price cut smacks of incompetence, insincerity and desperation,” the APC Campaign Spokesman said
According to him, “the US has witnessed price cuts in excess of 50% from $4.00 to $2.00 which translates into 50c per litre or N60 per litre including state taxes. How can petrol in the US be 25% cheaper than in Nigeria? It just does not make sense. This is too little too late. The alternative will be to further reduce petrol prices and overhaul the subsidy system which is a cesspool of fraud, money laundering and imperfect market structures.”
He questioned the motive and justification for a mere N10 cut in petrol price considering that global price of crude oil per barrel on which the pricing of petroleum products is predicated, has plummeted from $105 to $50.
“How did they calculate the ratio? Aside, if the new price took effect from 18th January, 2015 what happens to the backlog that has existed since December? Will the Minister and her boss give coupons to Nigerians to fill their tanks to make up for the arrears? Or who is benefiting from this windfall?” Shehu queried, warning “any attempt by the ruling party to make a political gain out of this natural economic phenomenon of demand and supply would definitely hit the wrong notes with the voters come February 14.”
Meanwhile, the Textile Workers’ Union has hailed the reduction in the pump price of petrol. General Secretary, NUTGTWN who is Vice President, NLC ,Comrade Issa Aremu said “As an affiliate of Nigeria Labour Congress (NLC), we commend the Federal government of Nigeria for the recent reduction in the pump price of petrol from N97 per litre to N87 per litre as announced by the Minister of Petroleum Resources, Diezani Alison-Madueke at a press conference at the presidential villa, Abuja, on Sunday. The new price regime takes effect today Monday January 19, 2015.
“The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have been in the forefront demanding that federal government should reduce pump prices of petroleum products in line with falling crude oil prices in the international market as has been done by other countries.
Aremu said “This singular gesture on the part of the government is a sign of good governance. Late President Yar’Adua commendably reduced the pump price of petrol from N75 to N65 in June 2007 when there was similar drop in international price of crude oil.
“To the extent that labour and civil society did not initiate mass protests and strikes before this reduction, President Gooduck Jonathan has demonstrated sensitivity which is in line with the best government best practice in other countries like Tanzania, Ghana, South Africa, Vietnam, Pakistan, China India, USA and UK among others that have reduced the prices of petroleum products.
“It is commendable Nigeria has joined this global trend. We call on the Federal government to reduce downwards the prices of diesel, lpfo (black oil), kerosene and other petroleum products in line with the global trend. Indeed the reduction of petrol price should be far reaching and lower than N87 per litre.
Comrade Aremu however called “on government to pass the Petroleum Industry Bill (PIB) and fix the refineries. With functioning local refineries, prices of petroleum products should be lower than the current price.
“We also call on the Petroleum Product Pricing Regulatory Agency [PPPRA] and the Department of Petroleum Resources [DPR] to ensure strict compliance with the new pricing regime by the oil marketers and ensure Nigerians reap the benefits of the reduction in prices.
