New price regime: Presidency clears air on Tinubu’s stance on fuel subsidy removal, deregulation

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, has clarified that President Bola Tinubu’s administration did not mislead the public regarding the removal of fuel subsidies and the deregulation of the downstream sector.

In a statement posted on his official X page, Onanuga refuted claims that the current government had not upheld its commitment to ending fuel subsidies since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.

He explained that subsidy allocations have been eliminated from Nigeria’s budget and were not included in the supplementary budget for 2023.

Onanuga’s statement was in response to speculation that the federal government was still paying fuel subsidies despite the announcement made in May 2023.

He said, “I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admittance it was owing suppliers some $6 billion.

“Some of the stories have been written with relish, as the authors believed they have uncovered some scoops.

“The truth is that there is no discovery. No lie uncovered.

“The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023.

“Since then, subsidy provisions have disappeared from the budget. It was not in the Supplementary budget of 2023, not in the 2024 budget and the amended 2024 budget.

“So the giddy headlines about the so-called unraveling of the Tinubu government’s subsidy payment; and return of subsidy were not justifiable.

“Rather what has unravelled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer.

“That generous disposition by NNPC Limited, backed by a compassionate president unwilling to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued Naira.

“The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent.

“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.

“There are no easy choices.

“Something must be done to make NNPC survive, keep the engines of government running and petrol flowing at the pumps.”

He, however, said the introduction of Premium Motor Spirit or petrol by the Dangote refinery into the Nigerian market, would definitely alleviate the suffering of the masses.

He said, “That is the scenario that is unfolding and the game changer and big relief giver may well be the Dangote refinery and other local refineries which will become the fuel suppliers to the local market.

“When Dangote Refinery and other refineries, including government owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts.

“There will be many good paying jobs that will be created along the value-chain. There will also be a drop in the huge demand for foreign exchange to import petroleum products.”

Uproar On New Pump price

A fresh wave of public outcry erupted on Tuesday after the Nigerian National Petroleum Company Limited (NNPCL) increased petrol pump prices from around ₦568 to as high as ₦855 and ₦897 per litre, depending on the location, amidst an ongoing fuel scarcity crisis.

Reports from Abuja indicated that prices were raised to ₦897 per litre, while our correspondent in Lagos reported that the NNPCL station on Awolowo Road increased its price to ₦855 per litre.

Following NNPCL’s price adjustment, other marketers also raised their prices, with increments of over 30%, bringing the price to approximately ₦897 per litre.

Earlier reports revealed that the ex-depot price of petrol had been increased to ₦754 per litre.

Speculation suggests that the price hike was implemented to align with global oil prices and to reduce the debt burden on NNPCL.

The Federal Government, however, has denied reports that it directed NNPCL to set fuel prices at ₦1,000 per litre.

“The federal government is compelled to address the outright falsehoods currently being circulated on social media, which claim that the Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed the Nigerian National Petroleum Company Limited to inflate petroleum prices above the approved pump price,” said a Tuesday statement by Nnemaka Okafor, special adviser, media and communication, to the Minister for Petroleum Resources (Oil), Heineken Lokpobiri.

The Nigerian Labour Congress (NLC) has since demanded a reversal of the new pump price.

Condemning the move in a statement, NLC President, Joe Ajaero, accused the Federal Government of betraying the labour movement.

Ajaero said, “We demand the immediate reversal of the latest increase in the pump of PMS across the country, the release of all those incarcerated or being prosecuted on the assumption of having participated in the recent protests.

“Halt the indiscriminate arrest and detention of citizens on trumped up charges, reversal of the 250% tariff hike in electricity, stop to the hijack of the duties of the Ministry of Labour and Employment.

“End to policies that engender hunger and insecurity, Halt to government’s culture of terror, fear and lying. We are guided by our belief in our country and the need to secure and sustain its sovereignty, integrity and welfare of the people.”

Dangote Refinery Launches Petrol Into Market

Shortly after the Dangote Refinery announced the launching of PMS into the Nigerian market on Tuesday, news broke that the NNPCL would still be the sole lifter of products from the refinery.

This fueled speculations that the announcement of a deregulated downstream market by President Tinubu’s administration was a fluke, and that NNPCL would continue to dictate prices for other oil marketers.

According to Aliko Dangote during a live press conference held on Tuesday, the new petrol prices would be determined by the Federal Executive Council (FEC).