Economy
Tinubu defends fuel price hike, says hard decisions necessary to reposition Nigeria’s economy.
Funso OLOJO
Tinubu travelled to the East Asian country on Sunday for a five-day state visit, where he also participated in the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC).
While addressing the Nigerian community in China, the President spoke of his administration’s reforms, including the deregulation of the petroleum downstream sector.
He said the hike in the pump price of fuel and other decisions by his government are part of an overall strategy to get Nigeria out of the doldrum and place it on the growth trajectory.
“Nigeria is going through reforms, and we are taking very bold and unprecedented decisions.
” For example, you might have been hearing from home in the last few days about fuel prices.”
“What is the critical part to get us there if we cannot take hard decisions to pave the way for a country that is blessed and so talented?
“The more you want everything free, it will become more expensive and long-delayed to achieve meaningful development,” Presidential spokesman, Ajuri Ngelale, quoted Tinubu as saying.
Tinubu defended the national oil company’s decision, noting that hard decisions are crucial to economic prosperity.
“But, can we help it? Can we develop good roads like you have here? You see electricity being constant in quantity and quality.
” You see water supply, constant and running, and you see their good schools. And we say we want to hand over a banner without stain to our children?
“So many of you are so talented, speaking very fluent Mandarin. It is what you contribute and tell them at home that will reflect in the attitude of our people,” he said.
The President noted that while it’s not always easy for a leader to have a national consensus on issues, he is ready to take the hard decisions to move the nation forward.
“We are focused, and I have a very good team,” Tinubu boasted.
However, the President’s justification for the latest fuel price hike was a breach of the promise he made to Nigerians in August 2023 that there would be no fuel price increase again.
According to the President’s Media Aide, Ajuri Ngelale, President Tinubu had in 2023 said although there were still inefficiencies in the midstream and downstream sector of the petroleum industry, he however promised Nigerians would no longer be burdened by another price hike.
“President wishes to assure Nigerians, following the announcements by the Nigerian National Petroleum Company Limited (NNPC), just yesterday (August 14th, 2023, that there will be no increase in the pump price of petroleum motor spirit anywhere in the country,” the spokesperson said.
Economy
News Alert: Again, NNPCL increases fuel pump price to N1,030 per litre in Abuja, N998 per litre in Lagos
— terminates exclusive purchase agreement with Dangote refinery
The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS) to N1,030 per litre at its various outlets in Abuja on Wednesday.
This price hike follows the company’s decision to terminate its exclusive purchase agreement with Dangote Refinery.
On Monday, October 7th, 2024,NNPC ended the agreement, allowing other marketers to directly purchase petrol from the refinery.
Consequently the national oil company is no longer the sole off-taker while marketers are now free to negotiate prices directly with Dangote Refinery.
This shift aligns with the current practices of fully deregulated products, enabling refineries to sell to marketers on a “willing buyer, willing seller” basis.
By implication and with the N1030 pump price of NNPCL, pump prices of the product by the major and independent marketers are now expected to be over the NNPCL pump price.
Economy
NNPC sells Dangote September fuel delivery at N950.22 per litre in Lagos
“The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.
“The NNPC Ltd assures that if the quoted pricing is disputed, it will be grateful for any discount from the Dangote Refinery, which will be passed on 100% to the general public.
“Attached to this statement are the estimated pump prices of PMS (obtained from the Dangote Refinery) across NNPC Retail Stations in the country, based on September 2024 pricing.
Economy
Rat Race: Dangote refinery drags NNPCL over purported sale of fuel at N898 per litre
“It should also be noted that we sold the products to NNPCL in dollars with a lot of savings against what they are currently importing.
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