Amidst speculations of plans for petrol price and electricity tariff hike mid-year, the Nigerian National Petroleum corporation (NNPC) says it will not increase the ex- depot price of\u00a0Premium Motor spirit, also known as petrol, in May.
But when exactly will it be, many ask, after reports of plans leaked into the public domain that the federal government has agreed with the International Monetary Fund (IMF) to end both electricity and fuel subsidies by mid-2021.
In Abuja last Saturday, many petrol filling stations did not have fuel, but the situation worsened Tuesday morning with long queues emerging at the stations, and passengers waiting for a long time early morning for scarce commercial vehicles to take them to their work places.
The Nigeria Natural Resource Charter (NNRC) relying on an International Monetary Fund (IMF) report, which followed the conclusion of IMF\u2019s Article IV consultation with Nigeria.
According to the IMF in the report, government promised to see to the end of tariff shortfalls that led to their re-emergence.
\u201cThey expressed strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021.
\u201cThey believe that lifeline tariffs and other relief measures are adequate to protect poorer households from increases in electricity prices and highlighted the benefits from higher and more predictable availability,\u201d the report reads.
Recall that in March 2020, government removed petrol subsidy, but it dropped up again following rise in price of crude oil at the international market.
On September 8, 2020, the Federal Government said its removal of petrol subsidy and the increase in electricity tariff were in agreement with reforms requested by the IMF\u00a0 and the World Bank as it seeks financial assistance of $3.4bn from IMF.
The President, World Bank, David Malpass had met with the Minister of Finance, Budget and National Planning and the Governor of \u00a0the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, on April 8, where the need to eradicate energy subsidies among other issues were discussed.
\u201cThe recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not re-emerge,\u201d the Federal Government told the IMF in the letter of intent dated April 21, 2020.
But the Group Managing Director, Malam Mele Kyari, at the end of a closed door meeting with Petroleum Transport Drivers (PTD), National Association of Road Transporters Owners (NARTO) and oil marketers in Abuja on Monday said there would be no increase ex-depot price of petrol in May as Nigerians wait with bated breath for June or July.
Ex-depot price is the price marketers buy products from depot owners; it determines the pump price at filling\u00a0stations.
Meanwhile, the News Agency of\u00a0Nigeria (NAN) reports that queues resurfaced in most filling stations\u00a0around the Federal Capital Territory with visibility of black marketers along the major highways.
\u201cWe want to inform oil marketing companies that NNPC will not increase the pump price of PMS in May.
\u201cI am giving the assurance and I ask Nigerians to go about their normal businesses; we have over 20 billion litres of petrol in our custody.
\u201cMany\u00a0of you are aware of this and with the assurance with tanker drivers and NUPENG, there is\u00a0no\u00a0need for panic buying of the product.
\u201cPetrol will be available in all the depots in the country including NNPC dispatched depot across the country, so nobody should panic in buying the product,\u201d he said.
On\u00a0the strike by PTD, he said the strike was associated with NARTO\u2019s inability to increase their compensation which was not resolved last week.
\u201cWe have given commitment to both NARTO and PTD that we will resolve the issue within a week and come back to the table to have a total closure\u00a0on\u00a0the issue.
\u201cWe also have a robust engagement with our oil marketing partners in respect of increase in the volume product that is check in the\u00a0Nigerian\u00a0market.
\u201cWe have agreed to work jointly with all the\u00a0security agencies\u00a0to contain any possible infractions seen in our borders.
\u201cWe will work as a team to curtail this fraudulent practice with the help of the\u00a0security agencies,\u201d he added.
He added that the meeting also discussed issues on payment by Petroleum Equalisation Fund (PEF) to oil marketing companies.
He said that all stakeholders agreed in making PMS available to marketers.
Alhaji Yusuf Orthman, NARTO President, commended the NNPC for the intervention and assured that within the next seven days, things will normalise in the adjustment of allowances of PTD.
\u201cWe have requested that they bring three persons so that we discuss the issues but that would not have been possible without this intervention.
\u201cWe hope that within the next seven days things will normalise and I want to assure Nigerians that we are committed to it,\u201d he said.
Also, PTD president said that the strike has been suspended until the next seven days
He commended the NNPC and all the stakeholders for their quick intervention.
\u201cWe believe that the condition of\u00a0service\u00a0of tanker drivers and\u00a0others\u00a0need to be improved and we believe that everything will be resolved as discussed,\u201d he said. (NAN)
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