The Advocacy/ Legal Lead for Policy Alert, Dr. Uko Etuk has expressed grave concern over the spiral effects of the unabated increase in the pump price of premium motor spirit (PMS) on millions of Nigerians.
Dr. Etuk who expressed the concern during a media chat with Nigerian Tribune, specifically frowned at Federal Government’s insincerity towards keeping its own side of the bargain for the adoption of the N70,000 new national minimum wage.
While expressing grief over the ripple effects of the hike on the Citizenry, Dr. Etuk averred that the policy somersault on subsidy regime will further compound the country’s predicaments.
He said: “The hike in fuel prices by the Federal Government is a sad situation given the current economic climate in the country.
“Nigerians are already burdened with inflation of goods and services, fuel prices have been hiked several times since the start of this administration and when we were rejoicing about the commencement of Dangote Refinery in producing PMS after 28 years the last time Nigerian refinery produced PMS, this happens.
“On the flip side, with the just passed Minimum Wage Act 2024, spear-headed by the NLC in agreeing with Federal Government the minimum wage of N70,000 without fuel price increase. It is more worrisome that with Nigerians earning just N70k per month as minimum wage at a time when PMS is about N900+ the hardship will only get worse. We are in for very austere times.
“However, it is a known fact that crude oil is an international commodity and its market price is determined in dollar. Thus, the economic indices come to play in harmonizing and determining the price of the PMS.
“One would have thought that given that crude oil is sold to Dangote Refinery in naira, without the petrodollar debacles that would bring pressure on the naira in search of dollar, certain concessions would be made for the domestic market.
“With the Federal Government still paying subsidies with different nomenclature and the NNPC in deep debt to oil marketers, it is very worrisome.
“In the economic context, a businessman is in the business of maximizing profits and not providing developmental services.
“What Nigerians should push for at this point is to ensure competition within the oil refinery industry. This is when the PH and Kaduna refineries should come on stream. This is when the private refineries with licenses should come on board and stimulate competition that will bring down the prices of the products and make the consumer king.
“I think it’s time we introduce competition in the oil refineries industry and deregulate the sector and make the citizens better off for it.”
