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By Adewale Sanyaolu
Nigerians have expressed displeasure over the inability of the Federal Government to allow market forces determine the pump price of Premium Motor Spirit (PMS) popularly called petrol.
In separate reactions, the concerned citizens said the continuous intervention of government in the area of price fixing for fuel was inflicting more economic hardship on them.
They argued that the monthly changes in the price of petrol in a deregulated market does not give room for citizens to plan based on their income.
Convener, Lets Do it Right, a Non Governmental Organisation(NGO) that champions good governance, Mr. Olaitan Philips, said the expenditure by the country, after spending over N10 trillion in fuel subsidy in 12 years and another N1.1 trillion in 2019 , was unsustainable
He said the announcement by the Minister of Labour and Employment on December 7, announcing the retail pump price of petrol at N162.44 per litre effective December 14 after deliberations between the Ministry of Labour and Employment and Labour leaders remained a way of announcing the commencement of subsidy through the back door
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Philips said that the announcement by the Minister of Labour indirectly means that Nigeria would soon be back to the era of petroleum subsidy.
“Should petrol pump prices really be fixed by mere negotiations between the Federal Government and Labour?
The pronouncement was abrupt and unanticipated considering the fact that, there were no consultations with the fuel marketers and other critical stakeholders before the pronouncement.
The negotiations between government and Labour, arriving at a N5 per litre reduction in petrol price, does not take into consideration the current rise in international price for petroleum products and the deteriorating foreign exchange rate,” he said.
In his submission, a financial expert, Mr. Anderson Julius, was of the view that the approach of negotiating petrol pump price between government and labour without the involvement of investors further diminishes investor confidence, setting a bad precedent that will be difficult to upturn when parameters that constitute the pump price of petrol rise again.
Julius pointed out that while it is clear that there are many Nigerians struggling with the economic downturn, loss of jobs and uncertainties in the future, a more direct intervention from the government would alleviate the immediate challenges Nigerians are currently facing.
