By Dada Ahmed in Lokoja.
Photo credit: Business Day Nigeria.
As the effects of the removal of fuel subsidy and the subsequent hikes in the pump price of the product bite Nigerians harder, residents of Lokoja, kogi state, have advised the President Bola Ahmed Tinubu to put all the refineries in maximum of production capacity to end increase in the price of fuel.
This they said would put pay to the importation of fuel in the country at the dictate of foreign exchange and halt the hike in the price of the product.
The residents gave the advice on Thursday in Lokoja in separate interview with the correspondent of The Reporters while commenting on the recent hike in the price of fuel throughout the country.
Mal. Adamu Muhammad, a civil servant, lamented that the hike in the pump price of fuel had led to “an quantifiable increase in the prices of food stuff, transportation, and other social and economic activities in Lokoja and its environs.”
“Going to market for food stuff is like going to the war as virtually every price of food has hit the roof, instilling fear in people’s mind,especially our wives whose statutory responsibility it is to purchase food for the family,” he remarked.
A Lokoja-Okene bound commercial driver, Otori Abdullahi, bemoaned the implication of the increase in fuel price to his work and his colleagues.
“We hardly make much money again, not to talk of profit since the increase in fuel started. We don’t see much passengers to convey from Okene to Lokoja and back as before the increase in the price of fuel.
“Many passengers complain of hike in transport fare. Few months ago, a journey from Okene to Lokoja which used to cost N500 par passenger has gone up to N2,500 or even higher.
“It takes fortune to buy fuel now a days and when we make attempt to let passengers share part of the increase, they respond with a lot of complaints,thus putting the drivers in a position of dilemma,” he lamented.
A market check by the online publication revealed that virtually all consumable items have gone beyond the purchasing capacity of the poor.
For instance, 50 pieces of knorr one of the commonest products to add taste to soup, hitherto sold at N250, has skyrocketed to N1,000.
“The rate of increase in the price of garri, rice, beans, yam, and soup ingredients among others are just beyond comment. We are just living on the mercy of God,” a house wife and mother of five told our correspondent,” a house wife, Mrs.Habibat Audu said while speaking with our correspondent on the issue.
The Reporters recalls that the first batch of petrol, 27 million litres, imported by an independent marketer, has arrived in the country, a development many economic argued would put an end to a downstream monopoly market once enjoyed by the Nigerian National Petroleum Company Limited.
Our correspondent gathered that the vessel, ST Nnene, which scheduled to arrive in the country last week was delayed at Lome waters consequent upon adverse weather but birthed at Ijegun-Egba on Wednesday, following the official end to subsidies by President Bola Tinubu on May 29 when he said this during his presidential inaugural speech at the Esgle’s square, Abuja.
ST Nnene, the PUNCH gathered, had cost Emadeb Energy’s Chief Executive Officer, Adebowale Olujimi, and its bank partners of $17m (about N13b) to hire.
According to the tabloid, five financial institutions- Polaris, First Bank, Union Bank, Access Bank and Fidelity bank bankrolled the deal.
“This was as foreign exchange rose from N745 to one dollar three weeks ago, to N845 as of Tuesday, and crude price rising to $80 per barrel as of 1:45pm Nigerian time on Wednesday.
“Until now, state oil firm NNPCL had enjoyed a monopoly downstream market for years. The firm had singlehanded imported petrol consumed in-country, and had dictated prices.
“Since the end of subsidies which cost the country about N12tn, prices of petrol had risen from an average of between N180/N200 per litre, to N617 per litre as of Tuesday.
“While speaking at the birth of ST Nnene,Olujimi said petrol importation was no longer sustainable” pointing out that resuscitating local refining was the way to go.
“Petrol importation is not a sustainable way for a country to run. From what we saw yesterday when PMS price rose to over N600 per litre, it is an indication that the dynamics of the business is a tough one.
” It requires huge US dollars to bring in this. The way forward is for local refineries to be revived,” the paper quoted him.
The online publication further gathered that the Nigerian National Petroleum Company Limited, NNPCL increased the pump price of fuel from N537 per litre to N617 per litre, attributing its action to foreign exchange to naira.
