FG insisting on current petrol price means subsidy is back – Marketers
The ex-depot price of petrol stood at N580 per litre in Lagos on Thursday and that after adding the cost of conveying it to filling stations and the marketers’ profit margin, it ought to sell for between N620 and N630 per litre.
the negative reactions that had been trailing its economic policies, including the astronomical surge in the cost of living occasioned by the removal of fuel subsidy and the floating of the naira, coupled with a possible backlash if the pump price of petrol rose further, the Tinubu administration decided to peg the price at the current rates and instead opted to accommodate some form of subsidy.
A source said, “Ordinarily, the government ought not to be involved in fixing the pump price of petrol in a deregulated economy just as it is with diesel and kerosene, but when we realised how the removal of subsidy on petrol has thrown the citizens into poverty and how fast the administration is losing credibility and goodwill, we had to put on our thinking caps.
“The security reports we are getting are not favourable at all. There is a high probability that there may soon be civil unrest and escalated tension as the citizens have been pushed to the wall. There are indications that the organised labour, civil society and the opposition are planning to plunge the country into a spontaneous crisis that may snowball into protests that if care is not taken may threaten the stability of the government.
“Don’t forget that the election that brought President Tinubu in is still being vigorously challenged by opposition parties, who are mounting massive pressure on the judiciary to overturn the result. Any protest at this time will not augur well for the administration as it will be difficult to contain and may be hijacked by the opposition, and if the presidential election petition tribunal orders a rerun or cancellation of the election for a fresh one to take place, you can imagine what will happen to the Tinubu presidency.
“Yes, the NNPCL and marketers gave feedback about what the ideal pump price of petrol should be, but we reasoned that any further increase will be catastrophic and ignite spontaneous protests nationwide. It will be suicidal for us to watch that happening.”
A source revealed that this informed the decision of the NNPCL to secure a $3bn crude repayment loan on Wednesday to support the naira and stabilise the foreign exchange market.
An official of a fuel marketing firm said:
“Our ex-depot price as of Monday was N575 and by Thursday, it had jumped to N580. Ideally, we should be selling above N600, say N620 per litre in Lagos, but the Federal Government is saying we can’t increase the pump price, so who pays the differential?
“The business is no longer profitable and that is why a lot of independent marketers are abandoning their filling stations and selling them to major marketers, which have the resources to absorb some of the unexpected volatility.
“Before subsidy removal, it used to cost a tanker about N5m to lift petrol from the depot, but now, the price has jumped to about N25m and the profit margin on that is just around N300,000. So, it is not an encouraging business at the moment.”
Niger Coup: ECOWAS, FG seek support of int’l community to restore democracy
The Federal Government and the Economic Community of West African States (ECOWAS) have called for support from the international community to restore democratic rule in Niger Republic.
Amb. Ibrahim Lamuwa, Permanent Secretary, Ministry of Foreign Affairs, said this while briefing the diplomatic corps on the political situation in Niger Republic on Friday in Abuja.
Lamuwa said the FG and ECOWAS commended the International community for condemning Gen. Abdourahamane Tchiani-led coup that outsted Niger’s democratically elected President Mohamed Bazoum from office on July 26.
This is also as they expressed concerns over the safety of Bazoum who is reportedly held by the military junta in detention.
“Consequently, Nigeria and indeed, ECOWAS, call upon the international community to remain resolute on this stance and to continue to show solidarity to ECOWAS in affirming the superiority of democratic and constitutional rule over dictatorship.
“No doubt, the developments in Niger, like Burkina Faso, Mali and Guinea, have raised serious concerns about regional stability and democratic principles in the region.
There is concern that the success of the coup in Niger would significantly dampen ECOWAS’s reputation, especially if the country joins the ranks of others that are governed by unconstitutional leaders, such as Burkina Faso, Guinea, and Mali. “The ECOWAS authority aims to ensure that the life of President Bazoum, his family members and other political leaders detained alongside him are preserved and their constitutional rights protected.
“The region holds that President Bazoum remains the legitimate President and Head of State of the Republic of Niger, recognised and supported by ECOWAS, the AU and the international community and therefore rejects any form of resignation that may purportedly come from him, perhaps under duress.” Lamuwa stated
Source: @vanguardngrnews
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