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Stakeholders condemn NLC’s opposition to petrol subsidy removal

By on January 6, 2016

Operators in the oil and gas sector have condemned the continued opposition of the Nigeria Labour Congress to the removal of petrol subsidy by the Federal Government.

According to them, the removal of subsidy on petrol by the Federal Government is long overdue, as they urged the President Muhammadu Buhari-led administration to ensure that it halts further fuel subsidy.

Sunday PUNCH had exclusively reported the end of the petrol subsidy regime by the Federal Government, going by the latest pricing template of the Petroleum Products Pricing Regulatory Agency.

But the NLC had claimed that the new petrol template released by the PPPRA was not transparently done.

The General Secretary, NLC, Dr. Peter Ozo-Eson, had argued that the PPPRA arrived at the new petrol price without adhering to the law guiding the exercise.

He said the process was flawed, arguing that it was carried out as if there was a deliberate plot to confuse Nigerians in order to increase the pump price of petrol in the future.

Reacting to the development, industry stakeholders told our correspondent in separate interviews that the billions of dollars spent on subsidising petrol should have been used to improve other sectors of the Nigerian economy.

They cautioned the NLC against its opposition to the removal of subsidy on the product, noting that the labour union might not get the support of all Nigerian workers if it should embark on any form of industrial action in protest against subsidy removal.

The Managing Director, Frontier Oil Limited, an oil and gas field development firm, Mr. Dada Thomas, told our correspondent that “the removal of subsidy should have been done long, long time ago.

“I commend the government for having the courage to finally remove subsidy on petrol. This is because the government shouldn’t be in the business of subsidising petrol. And I don’t think it is wise to protest against this development this time around.”

The President, Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Basil Ogbuanu, said the subsidy regime never benefitted the poor in contrast to its numerous benefits to oil marketers, who received huge sums from the Federal Government.

He said, “The subsidy is not getting to those who are actually meant to benefit from it. And secondly, there is no need paying subsidy on some of these commodities, particularly kerosene. We have enough gas in Nigeria and LPG is better, cleaner and safer. So, why pay subsidy on another commodity when we have better alternative in Nigeria?

“If the government can sustain that decision, then it must have done well for this country. The NALPGAM and LPG marketers in Nigeria are supporting the halt in the payment of subsidy 100 per cent.”

When told that some groups like the NLC had raised concerns over the removal of petrol subsidy, Ogbuanu said, “My thinking is different. Like I said earlier, the subsidy does not benefit the poor. I’m having my holiday in Enugu as we speak and I’m buying fuel at between N115 and N150 per litre, depending on where it is bought. Now, tell me who is subsidising who? Is it me or the government?

“If you want to buy petrol in the NNPC filling station, you will have to queue overnight. So, who are the poor masses here? For instance, how much is the price of kerosene in the market? Is it actually cheaper than LPG? And even without government’s assistance or subsidy, LPG is readily available, for instance in Lagos.”

 

[Punch]