By Tina Amanda
Dr. Joseph Obele, an energy marketing expert and former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Rivers State, has condemned continued fuel price hikes as it will worsen inflation in the country.
Obele expressed concern that the timing and frequency of fuel price hikes by the Nigerian National Petroleum Corporation (NNPC) are pushing many marketers out of business.
He pointed out that the continued increment is a result of the Nigeria Labour Congress’s (NLC) failure to defend citizens’ interests.
“The new buying rate for marketers within the Port Harcourt catchment area is now #1,045 per liter, which is against the rate of #876 it was before, while marketers in Lagos will now buy at a new rate of #1,010 per liter.
“It is important for the general public to understand that marketers’ buying rates are different from marketers’ selling rates at filling stations. The Ex-depot price is the rate marketers buy from NNPC, after which Marketers will add a markup based on overhead expenses and Operating costs.
“The vulnerability of Nigerians regarding frequent increment of PMS is a clear indication of the failure of the current leadership of Nigeria Labour Congress.
“The citizens of Nigeria are defenseless and voiceless, otherwise it could have been impossible for the federal government to increase fuel prices on three occasions within one year. It is quite unfortunate.
“The recent increment of PMS is the last bus stop and end fuel subsidy era in Nigeria as the new rate is zero Subsidy cost. The new selling rate of PMS corresponds to the rate at which Dangote will be selling to Marketers.
“Above all, the majority of Petroleum Marketers will be out of business and sack workers for inability to raise the recent capital for purchasing one truck of PMS.
“As at last year, a truck of 45,000 liters of PMS was purchased for #7 million only. Arising from the recent increment, a truck of PMS will now cost #47 2.
“The inability of Marketers to raise capital due to the recent increment will make 10,000 Marketers quit Business, and as such those Marketers will sack over one million direct and indirect Staff.”
Industry Expert believes that the impact of the latest increase is expected to be felt across various sectors, further straining the country’s already fragile economy.
“Regrettably, the new increment of PMS will further worsen the bitting inflation in Nigeria as prices of other commodities will definitely experience upward review in coming days.
“Nigeria’s Economy looks hopeless and it is becoming tougher every day.
“All this is happening to us as a nation because we are not talking as a people, I think we are not yet feeling the pains, when the pains become unbearable, then we will speak out as a people.
“Nigerians always rely on prayers to do for us what we can do for ourselves, so let’s keep praying. It is well with us.”
