Fuel marketers have proposed an increase of fuel price to N165 per litre, citing forex challenges, especially scarcity of foreign exchange to finance Premium Motor Spirit (PMS) importation and high exchange rate, which had been sending them out of business.

This was as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas (NUPENG) have warned against any increase in pump price of PMS, popularly referred to as petrol, at this critical time.

PENGASSAN and NUPENG posited that “as much as we are starred in the face with the above facts, we believe that this is not the right time to review the pricing template of PMS.”

The unions made the position known in a joint position paper presented to the ad hoc Committee on Review of Pump Price of Premium Motor Spirit, at the House of Representatives, on Monday.

The unions stated that further review of petrol price should not be contemplated now, based on the present economic situation in the country.

They said: “The economy is biting hard on all Nigerians. Any attempt to further review the template will further impoverish ordinary Nigerians, as the additional price will be transferred to the end users of the product. Such review will further impact negatively on the economy, which the government is trying to pull out of recession.

“PMS is a stable product in Nigeria and if there is any increase in its price, it will definitely drive up the inflation index. Nigeria depends on PMS, for not only transportation, but also to generate power for either home or industrial use, especially the Small and Medium Enterprises (SMEs) which can jumpstart the nation’s economy.

“As major stakeholders in the oil and gas industry, we supported the review of the pricing template that moved the price of PMS to N145 per litre on the condition that the government will put in place some palliative measures and reinvest the gains from that price regime to cushion effects of the increase.”

The unions urged the government to provide transportation system, which should include rehabilitation of the rail system, good and motorable road networks, among others.

As part of the palliatives, PENGASSAN and NUPENG called for upward review of workers’ wages to meet the reality of the increment and rejuvenation of the power sector for efficient and effective electricity supply to enhance performance of the real sector, especially the SMEs and other manufacturing companies that are affected by the epileptic power supply.

They also called for provision of good health care system and stressed the need to enhancing local refineries, adding that this was key to the development of the downstream sector and the deregulation policy of the government.

According to the unions: “The Minister of State, Petroleum Resources, Dr Ibe Kachikwu, said some time ago, the nation’s four refineries in Port Harcourt 1 and 2, Kaduna, Warri had attained a combined daily production of about 6.76 million litres of petrol per day.

This is still not what is expected from the local refineries.

“We have, on several occasions, demanded that the government must ensure optimal performance of the existing four state-owned refineries in Port Harcourt, Warri and Kaduna and also put in place machinery for the construction of new refineries in the country to ensure adequate production for domestic consumption and possible export.

“The refineries’ epileptic state has given room for massive importation of petrol which is a big weight on our foreign exchange. For us to stop exporting jobs outside our shores, the nation’s four refineries must be made to work optimally and that will go a long way in reducing the heavy cost incurred on importation of petrol.

The unions called for an all-embracing stakeholders’ forum to look into the issue.

The unions added: “In the mean time, to resolve recent price crisis, the Federal Government should give forex concessions to oil marketers to enable them import petroleum products and make their margin.

“The change mantra of President Muhammadu Buhari harps on job creation and not job losses. In this regard, forex concession should be given to oil marketers to make it easy for them to import PMS, so that they can make profit and keep their workforce.

“We also call on government to reduce the sundry charges created by some bodies controlled by government. For instance, NPA charges, NIMASA charges and storage charges, as they will go a long way to push down the landing cost.”

•Excerpted from a Nigerian Tribune report.

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