NNPC, PPPRA recommend N100 per litre for petrol

Sources close to both agencies confirmed to Business Day that the Federal Government is being urged to rescind its decision not to increase the price of refined products this year.

An independent marketer who is also privy to the recommendation said increase in prices of petroleum products are usually arrived at after a meeting between the PPPRA, NNPC, Labour, independent marketers and other stakeholders.

However, he said though no meeting has been called to discuss price increase, the NNPC and PPPRA were convinced on the need to effect an increase in view of the high price of crude in the international market and the increasing cost of refining products which NNPC imports.

Though the current cost of importing refined products could not be obtained from the NNPC whose officials were said to be on New Year break, the corporation is aid to be spending twice what it used to spend, to import the products.

"I must tell you that no meeting has been called by the PPPRA and held to discuss price increase unless one has been held without inviting we the marketers. But as an official of IPMAN, there is no doubt that the NNPC and PPPRA want the subsidy on petroleum products to be removed and consequently, increase prices of the products.

"The only thing holding them back on price increase is the presidency. They have to convince the president that the increase is necessary and for him to change his decision not to increase prices for one year in the face of the reality on ground.

"We are aware that they are holding discussions with him and as for your question on whether there is scarcity of products, I will say there is no scarcity. What is happening is that marketers are aware of the discussions going on and they are anticipating an increase early January. So the difference in the abundance in Abuja and other parts of the country is the absence of monitoring especially during the holidays."

This explains the scarcity of petroleum products and increase in their prices by marketers in some parts of despite the NNPC assurance that the country has more than enough products to meet demands during the festive periods.

An official of the NNPC told BusinessDay that the corporation has nothing to do with price fixing, a role which he said is entirely that of the PPPRA.’ The marketers can say whatever they like. You know that we are also marketing like them and whatever affects them also affects the NNPC,’ he said.

The organized labour seems to be aware of the alleged ongoing discussion between the Federal Government and the oil agencies hence it has warned against any attempt to effect an upward review of the prices.

Speaking recently, NLC president, Abdulkadil Umar advised President Umar Yar’ Adua to stick to the letters of the agreement reached between it and labour during the last strike and his promise not to effect any increase in one year

Peter Esele, President-General of the Trade Union Congress (TUC) who is also a member of the board of the PPPRA said he had no knowledge of a planned increase in prices of petroleum products or an ongoing discussion between the Federal Government and the agencies.

He said all efforts will be made to forestall any attempt to void the agreement which brought the last strike to an end saying ‘till now, no meeting has been held between organised labour and the Federal Government after the last round table meeting held between the two parties following the 21 days strike action in protest against the 10 percent Value Added Tax (VAT) and N10 increase in petroleum products prices.