Although the groups welcomed the reduction of the pump price from N97 to N87 per litre, they argued that it was far from what the cost of the product should be.
They spoke just as most filling stations still sold petrol at the old price of N97 instead of the N87 announced on Sunday night by the Minister of Petroleum Resources, Diezani Alison-Madueke.
The NLC, in a statement by its General Secretary, Peter Ozo-Eson , said the reduction was “not sufficiently deep enough.”
It argued that the N10 reduction was not substantial enough as it translated to only 10.3 per cent per litre as against the 33 per cent reduction in other countries.
The congress also said that the government had denied Nigerians the full benefits of the falling price of crude oil in the international market with the devaluation of the naira.
It said, “The reduction in the pump price of Premium Motor Spirit from N97 to N87 per litre is a welcome development. However in our estimation, it is not sufficiently deep enough.
“Prior to this price reduction, government had substantially devalued the naira, thus ensuring that the full benefits of falling crude price are not passed on to Nigerians.
“The N10 price slash translates to 10.3 per cent reduction compared to 33 per cent price reduction in most countries. For instance, in the United States the price dipped to under $2 from $3 per gallon.”
The NLC also said that the price reduction should have come from the board of the Petroleum Products Pricing Regulatory Agency, the body entrusted with the responsibility of fixing the prices of petroleum products.
The labour body however appealed to transport operators to ensure that Nigerians benefitted from the price reduction.
TUC, through its President, Bala Kaigama, also urged the government to come out with a more realistic template that would be beneficial to the citizenry.
It said, “That they have attempted to be sensitive to the demands of the people is enough for us to commend.
“We however urge them to be more sensitive particularly in the area of working out a more realistic template. They have started, the price is going down, we need a more realistic template that would make Nigerians to benefit from the impact of the falling oil prices.”
Also on Monday, the Nigeria Employers’ Consultative Association said the reduction in the pump price of petrol should have been accompanied by the complete deregulation of the downstream sector of the oil and gas industry.
Though it commended the review, it noted that it was shameful for a foremost producer of crude oil in Africa to rely on importation of refined products for consumption locally.
NECA stated that the opportunity presented by the slide in oil prices should be utilised by the government to deregulate the industry and privatise the four government refineries.
The association, in a statement by its Director-General, NECA, Mr. Olusegun Oshinowo, added, “It is a common thing for government to weigh economic imperatives against political exigencies in moments of political engagement and political process as we are currently experiencing. Government is more likely to accord priority to political exigencies while relegating economic imperatives to the background, particularly if the fallout of the economic imperatives will undermine public perception of the government.
“The issue, however, is that the government is not faced with that choice under the current circumstance as the economy stands to gain from the deregulation policy. We, therefore, call on the government to do the needful by coming out boldly and courageously to inform the Nigerian populace that it has deregulated the downstream sector of the oil and gas industry.”
Shortly after they spoke, the PPPRA announced a reduction in the ex-depot price of petrol from N81.51 to N77.66 per litre.
The agency said the reduction became necessary following the reduction in the pump price of fuel.
The agency, in a statement, said, “Consequent upon this (government’s) announcement, the PPPRA, in exercise of its mandate of determining the pricing policy and setting benchmark prices of petroleum products, hereby further announces the new ex-depot price of PMS as N77.66 per litre.
“In view of the foregoing, oil marketers are hereby advised to adhere strictly to this new price regime, as the PPPRA, in conjunction with the Department of Petroleum Resources shall enforce compliance in order to ensure that consumers benefit fully from this new review. In other words, any violation of the prevailing price regime, shall attract appropriate sanctions.
“It is therefore our wish to advise Nigerians against any form of panic-buying, as there are enough products in all depots across the country. We also wish to assure Nigerians that the PPPRA, in exercise of its mandate, is fully committed to ensuring adequate supply and distribution of petroleum products.”
Meanwhile, most major and independent marketers of petrol did not adjust their pumps to reflect the new price regime.
From Lagos to the Federal Capital Territory, Oyo to Ekiti, and Cross River to Plateau states, motorists were told by fuel station attendants that they were either waiting for an “official order from appropriate quarters” or wanted to sell off their old stock first.
In President Goodluck Jonathan’s state, Bayelsa; Akwa Ibom and Cross River states, the product sold for between N100 and N105 in most filling stations.
When one of our correspondents visited Mobil Filling Station at Gbagada Lagos, around 2 pm, an officer of the Nigeria Security and Civil Defence Corps, Ajaja, H. O, was seen insisting that petrol should be sold at N87 per litre. But the station attendants said they had not been given the directive by their head office to change the price.
At Capital Oil Mega Filling Station on the Lagos-Ibadan Expressway, one of the attendants said they did not change their price because they were still selling their old stock.
The same reasons were given by officials of the two Oando filling stations on the Lagos Ibadan Expressway.
When contacted on the telephone, the Chairman, Nigeria Union of Petroleum and Natural Gas Workers, Lagos Zone, Tokunbo Korodo, said that compliance level might not be total in the interim.
According to him, marketers were of the view that they should have been informed by the government before making the reduction public.
“If government wants marketers to switch to the new price with immediate effect, there should be some provisions for marketers who would make loses by doing so,” he said.
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