The Nigeria Labour Congress on Monday described the N10 reduction in the pump price of Premium Motor Spirit, popularly known as petrol, from N97 to N87 per litre by the Federal Fovernment as not sufficiently deep enough.
The NLC pointedly declared that the N10 price slash only translates to 10.3 per cent compared to 33 per cent price reduction in most countries.
The Congress stated these in a statement by its General secretary, Dr. Peter Ozo-Eson, titled: “Break This Stranglehold.”
The NLC recalled that 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 Congress stated that the price reduction it envisaged is the one that will operate within the institutional framework of Petroleum Product Pricing Regulatory Agency.
It explained that the logic of its reasoning is hinged on the premise that only the PPPRA is charged with the statutory responsibility of determining petroleum product prices based on a relatively acceptable template.
The statement by the NLC reads: “The reduction in the pomp price of Premium Motor Spirit (PMS) 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% price reduction in most countries.
For instance, in the United States the price dipped to under two dollars from three dollars per gallon.
“We recall urging the government to effect a price reduction following a sustained price slump of crude oil in the international market in order for Nigerians to benefit from the development.
“We commend the government for listening to our advice.
However, the price reduction we envisaged is the one that will operate within the institutional framework of PPPRA.
“The logic of our reasoning is hinged on the premise that only the PPPRA is charged with the statutory responsibility of determining petroleum product prices based on a relatively acceptable template.
“Accordingly, it is the PPPRA (on whose board we have NLC, TUC, NUPENG, PENGASSAN, NURTW) relying on the existing price template that could arrive at a fair and just price reduction.
“In order words, the reduction by the government, as welcome as it is, is by fiat.
“It is unfortunate that the PPPRA Board has been sidelined for so long.
“We demand that its board be constituted immediately to enable it discharge its statutory functions.
“However, beyond the issue of price reduction of PMS, the regulatory agencies in the down stream sector of the oil industry need to protect Nigerians against monopolistic exploitation.
“We make bold to refer to the unacceptable price manipulation by monopolies in the oil sector where prices have remained unreasonable high for diesel the price of which is deregulated.
“Given the realities of the international oil market today, there is no reason for maintaining the price of diesel at N160 per litre.
“The regulatory agencies are called upon to break this stranglehold on consumers.
“Finally, we wish to appeal to transporters and transport operators alike to ensure that the benefits of this price reduction get to commuters.”