Outrage As Depot Price Hike May Push Petrol To N160
Not too long ago, the Nigerian Postal Service (NIPOST) introduced new charges that would cause an increase in the costs of licensing for logistics and courier service providers which resulted in major outrage all over the country.
Small businesses in Nigeria are still trying to adjust and move around these changes that have been imposed on their finances, but it seems there is still more to come. They have suddenly been hit hard by the skyrocketed increments in fuel prices within the last three months.
This leaves one to wonder how they are supposed to manage and run their businesses, seeing that many SMEs are still trying to recover from the negative effects of the Covid 19 pandemic.
The Punch reports that the pump price of the Premium Motor Spirit, also known as petrol, appears set to hit N160 per litre as the Nigerian National Petroleum Corporation has increased the price at which it sells the product to marketers from N138.62 per litre to N147.67.
The Petroleum Products Marketing Company, a subsidiary of the NNPC, had initially on Wednesday increased the ex-depot price of the PMS to N151.56 per litre, with marketers saying the product would be sold at between N162 and N165 per litre.
The ex-depot price is the price at which the product is sold to marketers at the depots.
The N151.56 ex-depot price was announced in an internal memo to all stakeholders with reference number PPMC/IB/LS/020 dated September 2, 2020 and signed by D.O Abalaka.
The memo, a copy of which was seen by one of our correspondents, said, “Please be informed that a new product price adjustment has been effected on our payment platform.
“To this end, the price of Premium Motor Spirit is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre. This is effective from September 2, 2020.”
But the PPMC, in another internal memo dated September 2, 2020 with reference number PPMC/MOD/Sales/346 and signed by Onya Schola, reduced the ex-depot price to N147.67 per litre.
When the ex-depot price was fixed at N138.62 in August, marketers were selling petrol at between N148 and N150 per litre. With a new ex-depot price of N147.67 per litre, the pump price may be between N157 and N160 per litre.
Amidst the different ex-depot prices, the Managing Director of the PPMC, Musa Lawal, told one of our correspondents that the first ex-depot price was wrong and should be discarded.
He said the company was investigating how the first memo went out, stressing that although it was from the PPMC, the figures were still being computed and had not been concluded.
“That is not authentic. It is wrong and there is a price review which shall be communicated properly, but what came out early today is the wrong one,” Lawal stated.
The PPPRA’s silence on petrol price is contrary to what it said in March.
The agency had stated that it would be issuing a monthly guiding price for petrol, but in August it did not issue any and had remained mute since then.
MAN warns that small businesses will be hard hit,
The acting Director-General, Manufacturing Association of Nigeria, Mr Ambrose Oruche, in an interview with one of our correspondents, said the poor and small businesses that depended on the PMS to power their generators would be hit hard.
He said it was important for the government to introduce measures to cushion the effect of the deregulation in the sector.
Oruche stated, “To reduce the impact, the government should do more to ensure power generation is big and distribution is efficient, and ensure that people get at least 20 hours of light in a day to reduce dependence on the PMS.
“Government should find a way of compensating the SMEs to stay in business through tax rebates or grants to remain in business and stay competitive.”
NLC says, Nigerians are being taken for granted by this government.
But the Nigeria Labour Congress said by increasing the fuel pump price three times within three months, the Federal Government was taking Nigerians for granted.
Source: https://punchng.com/outrage-as-depot-price-hike-may-push-petrol-to-n160/?amp=1
