Subsidy removal: Food prices, transport fares soar

• FG, labour meeting deadlocked
• NLC rejects N557 official price
• Deregulation right way to go – Economist

The removal of petrol subsidy and the hike in pump price have led to a spike in transport fares and food prices across Nigeria.

The Nigerian National Petroleum Corporation Limited (NNPCL) yesterday confirmed an upward review of pump price of petrol from N197 to as high as N557 in some states.

Daily Trust observed that some private marketers were dispensing the product at N700/litre.

New price regime

The Chief Corporate Communications Officer of the NNPC Ltd, Garba Deen Muhammad, said the price adjustment was in line with “market realities”, noting that the firm had directed its outlets nationwide to sell fuel between N480 and N570 per litre.

“NNPC Limited wishes to inform our esteemed customers that we have adjusted our pump prices of PMS across our retail outlets, in line with current market realities.

“As we strive to provide you with the quality service for which we are known, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics,” he had said in a statement.

According to a widely circulated list, a new table of retail prices had been adopted for different geopolitical zones of the country.

Retail managers of NNPCL outlets were instructed to implement the review from May 31 despite the claim of the provisions of N3.36trn to cover fuel subsidy payment for the first six months of 2023 by the previous administration.

According to the new price schedule, petrol will sell for N557 per litre in Maiduguri, Borno State, and Damaturu, Yobe, while it will sell for N550 per litre in the other states of the North East.

Birnin Kebbi will buy petrol at N545 to lead prices in the North West. The average price in the North Central zone will be N537 per litre, except in Ilorin, where it will sell for N515 per litre. Consumers in the South East will buy at an average of N520 per litre.

Apart from Uyo, Akwa Ibom and Yenagoa, Bayelsa where petrol will now sell for N515 per litre, the rest of the South South will get the product at N511 per litre.

A litre will sell for N500 in the South West, except in Lagos State for N488.

Petrol stations, including those of the NNPCL, across the country, have already adjusted their pump prices accordingly.

Nigerians groan as queues, hike in prices hit states

Transport fares in Abuja, Lagos and other cities increased yesterday amidst the current fuel crisis, which has led to long queues at most petrol stations.

A trip from Lugbe to Secretariat and Area 10 in Abuja that hitherto cost N200 increased to N400 while Nyanya/Mararaba to Berger is now N400 from N250/N300.

From Bwari to Berger and Area 1 is now N1,000/N1,200 from N500, while from Kubwa to Berger now cost N800/N1,000 from N300.

An official of the National Union of Road Transport Workers at one of the major parks in Nyanya said the transport fare from the park to Kaduna and Kogi is now N4,000 from N3,500.

Commuters in Lagos were seen trekking long distances yesterday as a result of hike in cost of transportation coupled with traffic congestion which has been made worse by queues at most filling stations in the state.

Oshodi to Mile 2 which was previously N400 is now N800; Agbara to Mile 2 is now N1,000 from N500 while commuters from Iyana-Iba to Iyana-Ipaja are expected to pay N800 from the initial price of N300. A trip from Costain to Ikeja which was N400 is now N800 while Costain to Apapa which used to be N200 is now N400.

In Oyo state, transporters increased their fares too. A trip from Ojoo to Total Garden has risen to N500 from N200; that of Ibadan to Lagos, which hitherto was between N800 and N1,200, was hiked to between N2,000 and N3,500 across various parks in the state.

Daily Trust also observed that the transport fare to Zaria from Kano which was N1,500 had been increased to N2,000; while from Zaria to Kaduna is now N3,500 from N2,000. A trip from Kano to Abuja had been hiked to N7,000 from N5,500.

In Kano, a dispatch rider at Kwari market, Suleiman Auwal said, “We’ve increased our services per trip from N500 to N1000 because we use fuel to convey goods to different clients”

In Ibadan, a bowl of garri, which sold for N350 as of Monday, now goes for N370 at the popular Bodija market. The same applies to yam flour price which has been increased from N300 to N350 per bowl

FG, labour meeting deadlocked

The meeting between the organised labour and the federal government representatives at the State House, Abuja, on the petrol subsidy removal yesterday ended in a stalemate as no agreement was reached.

The organised labour was led by the president of the Nigeria Labour Congress, Joe Ajaero and his counterpart for the Trade Union Congress, Festus Osifo.

The attendees included a former governor of Edo State, Adams Oshiomhole; Permanent Secretary, State House, Tijjani Umar; the Head of Service of the Federation, Folashade Yemi-Esan, the Group Chief Executive Officer, NNPCL, Mele Kyari; a director in the defunct Tinubu/Shettima Campaign Organization, Dele Alake, among others.

Ajaero and Osifo told reporters after the meeting that the labour’s position was that the status quo be maintained on petrol price while negotiations continued.

They said another meeting would be held after discussions with members of their executives on the outcomes of yesterday’s interaction with the government team.

Ajaero said, “As far as labour is concerned, we didn’t have a consensus in this meeting.”

He faulted the decision of the NNPCL to review the petrol pump price before the meeting, stating that the increase put the labour unions in a difficult position during negotiations.

“That’s the principle of negotiation. You don’t put the partner, ask them to negotiate under gunpoint.

“The prayers of the NLC is that we go back to status quo, negotiate, think of alternatives and all the effects and how to manage the effects this action is going to have on the people. If it’s an action that must take off.

“The subsidy provision has been made up to the end of June. And before then, conscious people, labour management, government should be able to think of what will happen at the end of June. You don’t start it before the time,” Ajaero said.

Alake said talks on solutions to all issues at hand would continue.

He said: “We’ve been deliberating on finding very amicable solutions to the issue at hand, to the queue and all of that and the increase in pump price.

“We had a very robust engagement. We cross-fertilized ideas, ideas flew from all sides and there is one thing that is remarkable even from the labour side, and that’s Nigeria. We’re all looking at the peace, progress and stability of Nigeria. That’s what is paramount. 

“Of course, the NNPCL CEO is here, Mr Kyari, we cannot go into details now because the talks are still ongoing. We cannot finish everything at one setting, so, we’ve adjourned now, we’re continuing the talks at a later date very shortly.

“But the point is that the talks are ongoing and it’s always better for all sides to keep talking with a view to arriving at a very amicable resolution that’ll be in the longer term interest for all Nigerians. That’s as much as we can say now.”

An Economist, Dr Bongo Adi, who is a senior faculty member, Lagos Business School, said the petrol subsidy removal was the right way to go as it would ensure the industry aligns with the dictates of the market.

He however warned that the government should guide against a situation where marketers formed a cartel to determine prices.

From Abiodun Alade, Jide Olasunkanmi, Eugene Agha, Abdullateef Aliyu (Lagos), Muideen Olaniyi, Seun Adeuyi, Idowu Isamotu, Philip Shimnom Clement, Dalhatu Liman (Abuja), Adenike Kaffi (Ibadan) & Salim Umar Ibrahim (Kano)