A human and environmental rights, pro-democracy and pro-poor group, the Foundation for Environmental Rights Advocacy and Development (FENRAD) has cautioned the President Muhammadu Buhari-led government against further increase in fuel price in the country.

The group, in a statement released on Sunday, jointly signed by the Executive Director, Comrade Nelson Nnanna Nwafor, and Head of Legal Team, Barr. Olusegun Bamgbose, lamented that a further increase will affect the economy, prices of goods and services, which will inflict another round of hardships on Nigerians.

The group, which described a rumoured increase in the price of fuel as exploitation, warned the Federal Government to desist from exploiting local consumers with indeterminate price regime.

FENRAD said a further increase in the fuel pump price will be ill-advised and ill-timed particularly against the backdrop of the economic challenges facing the nation.

The statement read in part: “FENRAD wishes to remind the federal agencies, authorities and government of the day, within whose sphere the petroleum industry and sector falls, that they cannot continue to exploit Nigerian local consumers with indeterminate price regime.

“This warning becomes so crucial, after the temporary N212.00 pump price – which had since been adjusted – threw the whole nation and all legitimate economic activities therein into perplexity and panic buying, amid huge losses, likely in the neighbourhood of billions of naira, suffered by indigent Nigerians.

“FENRAD understands that the federal government, through the Minister of State for Petroleum, had since apologised but the Foundation wishes to remind the federal government and its numerous agencies that it is highly undemocratic for one government petroleum agency to say price cap is this while another agency of government – still within same petroleum sector – says price cap is that instead. Do government agencies now work with different price templates?

“Rumours from the grapevine have had it that there was a looming price increase which the Nigerian National Petroleum Corporation (NNPC) flatly debunked claiming to have fuel that can serve the nation for 40 days within its reserve. “However, contrary to that claim, Nigerians received the greatest shock of the year when from a little over N160.00, pump price reached the astronomical height of N212.69.

“Aside showing the height of inconsistencies of government of the day, this price fluctuation further questions whether the President exercises bona fide executive powers as an elected President and self-appointed Minister of Petroleum.

“Worst is these are not the best of times for any unreasonable price fluctuation given that Nigerians – under the current administration – battle with high utility tariffs over electricity bill (the so-called reflective billing), VAT increase, increased interest charges on lodgements in and withdrawals from deposit money banks and the like.

“Also, given the bearish toll the pandemic took on Nigerian stock market as businesses, mostly of the informal sector and micro medium scale, went under, such price review would, for the most part, mean blue murder.

“FENRAD regrets the unpredictability of price template and modulation as occasioned by the inability of successive governments to fix the five refineries within the country. Since the five refineries can only generate a little over 400,000 bpd in a country whose daily budgetary benchmark is two million bpd or more, exportation and reimportation of the product with charges on landing cost (by Nigerian Port Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA); jetty throughput; freight cost; lightering cost; insurance cost; transportation; finance; etc) paid for by the federal government, usually through the Petroleum Equalisation Management Fund (Board) which manages subsidy regime, it has become unsustainable to maintain the current regime,” FENRAD said.

The group reminded the Federal Government agencies within the downstream, mainstream and upstream sectors to revisit and review the petroleum industry bill (PIB) adding that if harmonised it will boost local content and reduce bunkering and vandalism.

FENRAD advised the Federal government to respect negotiations with the Labour Congress and look inwards so as to devise means of solving price fluctuation.

The group while proffering solution for the oil sector also charged the Buhari-led government to live up to its campaign promise of reviving the refineries rather than causing further hardship on its citizens.