Port Harcourt — Following the reduction in the pump price of Premium Motor Spirit from N145 to N125, the Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, has tasked the Federal Government to totally deregulate petrol prices.
Speaking, the National Treasurer of NUPENG, Comrade Alex Agwanwor, said following the continuous dwindling in the global prices of crude oil, the time was just right for Nigeria to completely remove subsidy on petrol to fully deregulate the downstream sector.
Agwanwor, particularly commended the Federal Government for the reduction in the pump price of PMS, explaining that it will help in cushioning the effect of low oil prices.
Contrary to claims by some Nigerians that the reduction in fuel price by N20 was insignificant, the NUPENG treasurer said the reduction was significant, as it will bring about the reduction in the price of goods and services in the country.
According to him, “We commend and appreciate the federal government for taking this step. We also see it as an opportunity to deregulate the system by removing subsidy.
“It is a welcome development. The price of crude is going down seriously, the price of lifting and logistics have also reduced, so it is obvious the federal government had to also reduce the price of fuel.
“It will help cushion the hardship in the country as a result of the downfall in crude oil prices.”
Agwanwor who is also the Chairman of United Labour Congress in Rivers State, explained that the reduction in fuel price will also affect market forces, as there will be huge relief for consumers, concerning the price of goods and services.
“We expect companies and entrepreneurs to also reduce the price of their goods and services, because when the price of fuel was increased, they had also increased the price of their goods and services. So now that fuel price has been reduced, so I also expect the price of goods to reduce.
“Matter of fact, I expect the reduction to begin from commercial transporters.
“N20 is not insignificant, for instance if your are buying up to 50 to 100litres of fuel, you will understand that N20 is not insignificant. Anyone saying the reduction is insignificant does not like good thing.
“You see we are fond of blaming the government for everything, but we refused to also do our own part. At least the government has done something, so I expect producers, entrepreneurs and traders to also bring down the price of their products.”
Asked if fuel price at N125, was not still high as compared to the prevailing price of crude oil, Agwanwor said he was optimistic that the Federal Government could still bring down the price, since consultation with stakeholders was still ongoing.