Fuel Price: NLC Threatens Fresh Action
Writes NNPC, IG, PPPRA over increases
From Juliana Taiwo in Abuja
The Nigeria Labour Cong-ress (NLC) has threatened a fresh showdown with the Federal Government if it does nothing to ensure that marketers reverse the latest increase in fuel prices.
In separate letters to the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun, Inspector General of Police, Mr. Tafa Balogun, and Executive Secre-tary Petroleum Products Prices Regulatory Agency (PPPRA), Dr. Oluwole Oluleye, over the fuel price hike, the NLC said the increase suggests that the Federal Government was not ready to honour its commitment to the rule of law.
Marketers had last weekend, raised the pump price of premium motor spirit (PMS) otherwise known as petrol, to N43.90 per litre from N42.90. This represents 2.3 per cent increase.
NLC Acting General Secretary, Owei Lakemfa, stated in the letters that the increase violated the subsisting order of the Federal High Court in Abuja to the effect that the price regime pre-February 9, 2004 be maintained.
The order was issued by Justice Roseline Ukeje, Chief Judge of the Federal High Court, on June 8, 2004 and was the basis for the suspension of the strike action declared by the NLC.
NLC had called the nationwide strike and mass protest when marketers raised petrol price to about N49.90 a litre. This was in reaction to the increase in the ex-depot price of fuel by the NNPC to N38.50 a litre from N33.50. Following the court order, the price was reduced to N41.50 per litre.
In the letter to PPPRA, Lakemfa expressed NLC displeasure and opposition to the fuel price increase.
"Any vacillation in doing this will imply that the leadership of the PPPRA is only interested in precipitating mass discontent, heating up the polity and portraying the Federal Government as incapable of honouring its commitments.
"Everything must be done to ensure that the increases are reversed, as the Congress would have no alternative but to respond based on its strong view of the situation", he stated.
The NLC also called on the Inspector General of Police (IGP) to give effect to the order made expressly on the Nigeria Police in line with its mandate to enforce the law and orders of the court.
"The leadership of the Police has a duty to act firmly and expeditiously in the circumstance to ensure that the marketers do not act in breach of the court order, as this will merely precipate mass discontent and heat up the polity. It will also leave the NLC with no alternative but to respond based on its strong view of the situation", it said.
The NLC, however, urged the NNPC to realise that as the key player in the supply of products and determination of price, it has the duty to immediately intervene to restore the prices according to the court order.
While the NNPC, which said it was losing on the average, N400 million on imported fuel, had since reverted the ex-depot price of fuel, marketers said the latest increase in price reflected the landing cost of the product it imported last week.
Nigeria, Africa's largest crude oil producer, relies heavily on importation to meet its domestic fuel demand following the low supply from the local refineries.
Official statistics made available at the weekend showed that the refineries with combined production capacity of 445,000 barrels per day (bpd) were producing at 62 percent of their capacity. The plants were supplying 10 million litres of petrol daily, up from 4.8 million litres.
NNPC officials said the refineries will achieve production capacity of about 80 percent by first week of September.
NNPC Group Managing Director, Engineer Funso Kupolokun, had early this year said the target was to cut contracts for the importation of petrol down to six cargoes per month from 24 cargoes.
The calculation, he said, was hinged on the major upgrade of the Fluid Catalytic Cracking (FCC) units of the refineries, which will raise output to 18 million litres of petrol per day. Domestic demand is put at 30 million litres.
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