The relief many Nigerians hoped for with the reopening of the Port Harcourt and Warri refineries appears to have been short-lived, as the recent hike in the ex-depot price of Premium Motor Spirit (PMS) and, by extension, the pump price, has dashed these hopes. This increase, endorsed by both the Nigerian National Petroleum Company Limited (NNPCL) and other refineries, seems to exacerbate the financial burdens already plaguing Nigerians, particularly in the wake of the fuel subsidy removal on 29th May 2023.
To add to the economic strain, the Federal Government, through the Nigerian Communications Commission (NCC), recently approved a 50% increase in telecom tariffs, a move that further affects struggling Nigerians who have already been grappling with economic hardship. The timing of these price hikes could not be more disastrous, as millions of Nigerians continue to bear the brunt of rising living costs.
According to a source, the ex-depot price of fuel was increased from N899.50 to N950. However, a cursory look at fuel pump prices across the country reveals that Nigerians are still paying over N1000 per litre, with some stations charging as much as N1,250. This price increase has been attributed to global crude oil price fluctuations, though there are questions surrounding the rationale for these hikes, particularly given that crude oil supply for local refineries is sourced domestically.
As for NNPCL, there is no valid reason for increasing the pump price of PMS. The move appears to be nothing more than an attempt to impose unnecessary financial strain on Nigerians who entrusted the management of their petroleum resources to the corporation. Not long ago, the price of fuel was below N300 per litre, yet under President Bola Tinubu’s administration, this price has soared to over N1000 in a matter of months. This is especially concerning in a country blessed with abundant natural resources, yet its citizens are being subjected to exorbitant costs.
The economic hardship that has followed the removal of the fuel subsidy is no longer news. Average families are struggling to afford even two square meals a day, while the political class continues to live in opulence. The Nigerian Labour Congress (NLC) has condemned the increase in both fuel and telecom prices, calling for their reversal. This is a sentiment that should resonate across the country, as these hikes affect all Nigerians, particularly the most vulnerable.
In a statement issued by its President, Comrade Joe Ajaero, the NLC described the price increases as insensitive, especially given the harsh economic realities many Nigerians face. The NLC has demanded that both NNPCL and other refinery operators reverse their price hikes, while also calling for telecom operators to do the same.
We share the NLC’s stance. In light of the ongoing economic challenges, there is no justification for these price hikes in either the petroleum or telecommunications sectors. We strongly oppose the decision by the NCC to approve such increases, which only serve the interests of telecom operators who claim they are struggling to break even. The decision by NNPCL and other refineries to raise their prices in these dire times is nothing short of heartless, especially when considering the current economic climate.
We join the NLC and other concerned Nigerians in calling for an immediate reversal of the fuel and telecom tariff hikes. History will surely look favourably upon those who heed this call, choosing to prioritise the welfare of the people over profit margins.