The Petroleum and Natural Gas Senior Staff Association of Nigeria has accused fuel marketers of exploiting Nigerians by selling petrol at high prices, despite a drop in global crude oil prices.
Speaking at a press conference in Abuja on Monday, the President of PENGASSAN, Festus Osifo, said petrol should currently be selling for between N700 and N750 per litre, not the N900 Nigerians are paying.
Osifo pointed out that crude oil prices had dropped from around $80 per barrel to about $60, but the pump price of Premium Motor Spirit remained nearly the same.
“When crude oil was around $80 per barrel, petrol was selling for about N900 per litre. Now that the price has dropped to about $60 to $65, we expected a serious reduction in petrol price,” he said. “But what we see is just a small change. This shows that Nigerians are being exploited.”
He blamed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to properly monitor and control fuel pricing, saying it was their job to stop companies from taking advantage of Nigerians.
“NMDPRA should not just watch while suppliers continue to exploit the people under the excuse of deregulation,” he said.
According to Osifo, two major things affect the price of petrol: the cost of crude oil and the exchange rate. He said both factors had been more stable recently, so there was no reason for the price to remain so high.
He explained, “If you calculate using the current crude price and look at the PLATTS index that is used globally, PMS should be selling between N700 and N750. That is the fair price based on what is happening in the global market.”
He added that while it is normal for businesses to want to make a profit, it is also the job of the government regulator to make sure the profits are not at the expense of ordinary Nigerians.
“We don’t blame business owners for wanting to make money. That is why they are in business. But the regulator must protect Nigerians from being cheated. If this continues, people will only suffer whenever oil prices go up, but they won’t enjoy any relief when prices fall,” he said.
Osifo also criticised the continued shutdown of the Port Harcourt Refinery and questioned why the government has not completed its repair. He said the slow pace of refinery rehabilitation is hurting Nigerians and making the country depend too much on imported fuel.
He called on the NMDPRA to regularly publish pricing templates and be more transparent so Nigerians can know how fuel prices are set and whether they are fair.
PENGASSAN said that without proper oversight, deregulation will only benefit marketers while the masses continue to suffer.
