The speculations about a possible increase in the prices of premium motor spirit (PMS) due to the volatility in the forex market have been dismissed by President Bola Ahmed Tinubu’s media aide, Ajuri Ngelale. Ngelale reiterated that there are no plans to increase fuel prices and emphasized that the deregulation policy will continue.
Speaking at the Presidential Villa on Tuesday, Ngelale stated, “The official position is that there is no increase in prices at this time and that Mr President is convinced, based on the information before him, that we can maintain current pricing without reversing our deregulation policy by swiftly cleaning up existing inefficiencies within the midstream and downstream petroleum sector.”
These statements come after the Nigeria Labour Congress (NLC) threatened to commence a nationwide strike without prior warning if the Federal Government approved a further upward review of pump prices for fuel products. The NLC expressed concerns over the volatility in the forex market, where the US dollar was exchanging for N945, leading to speculations of a possible hike in fuel prices.
The Presidency, however, confirmed that the daily consumption of PMS in the country has dropped from 67 million litres to 46 million litres. It also alleged gross misconduct within the Central Bank of Nigeria under the embattled former Governor, Godwin Emefiele, as a contributing factor to the crisis within the downstream oil sector today.
Ngelale further emphasized that President Tinubu is focused on maintaining competitiveness within all sub-sectors of the petroleum industry. He stated, “We believe that policies and their implementation should not encourage a monopoly in the market.”
Ngelale added, “Mr President wishes to assure Nigerians, following the announcement by the NNPC Limited just yesterday, that there will be no increase in the pump price of petroleum motor spirit anywhere in the country. We repeat, the President affirms that there will be no increase in the pump price of petroleum motor spirit.”
The Presidency reminded Nigerians that the fuel market has been deregulated and liberalized, and there should be a steady movement forward in that direction without looking back. Ngelale acknowledged that there are inefficiencies within the midstream and downstream petroleum subsectors but assured that the government is swiftly addressing and cleaning up the sector to maintain current prices without the need for a reversal of the deregulation policy.
In a bid to provide transparency, Ngelale shared graphics authorized by the President, which show the current cost of refined petroleum motor spirit at the pump in neighboring West African nations. The data reveals that Nigeria currently has the cheapest pump price compared to other countries in the sub-region.
While acknowledging the challenges faced in the petroleum industry, Ngelale urged Nigerians to be patient, promising openness and transparency in addressing the issues. He also hinted at revealing the illiquidity in the market regarding foreign exchange caused by the mismanagement of the Central Bank of Nigeria in preceding years.
