Following the aftermath of the US-Isreali allied strike against Iran, Partners for National Economic Progress (PANEP) has passionately appealed to the Federal Government to cushion the harsh effect of the global oil hike on the suffering Nigerians by increasing crude supply and subsidizing the price to local refineries.
Over half of the global oil supply comes from Iran and the gulf countries. The attack on Iran by Israel and the United States and the consequent disruption of oil production and supply has led to an exponential global oil prices
Addressing a press conference in Abuja on Wednesday, Conveners of PANEP, Comrades Danesi Momoh Princ, Igwe Ude-Umanta,
Olamide Odumosu
Olayinka and Dada
Daniel Omaga as projected that the “increase will certainly continue as the war progresses, especially with the vow of the Iranian Revolutionary Guard Corps to continue the blockade of the Strait of Hormuz.
“In the 10 days of the war, local petroleum products prices have risen to neck-breaking points, with low income earners and the poor masses of the country facing daily survival apprehension. The price of PMS moved from an average prices of between N830-N870 to N1300-N1400; while AGO spiked from N1200-N1700.
“This has triggered immediate inflation in the cost of transportation and ultimately, in other services and commodities. While we note that there cannot be any discussion about a return to petroleum products subsidy no matter how briefly, there could still be a way to mitigate this harsh reality of an existential challenge for many poor homes in Nigeria.
“Therefore, the Federal Government through the NNPCL should prioritise and increase crude supply to the local refineries. It should further directly subsidise it in a manner that it will reflect in reduced pump prices of products thereby easing the hardship faced by Nigerians.
“This is particularly instructive following the revelation by Dangote Refinery that though it is able to guarantee national petroleum products security and stability for Nigeria in the face of this war, it has not been able to access more than 32% of its due local crude. In fact, it receives an average of 28%.
“Nigeria as an oil producing country should not be totally exposed to the global oil price nightmares and volatility. So far, Nigeria has not been exposed to fuel shortages and queues, and will not, according to the assurances by Dangote Refinery and Petrochemical Limited. However, prices of products will remain high in Nigeria if it continues to source crude from the limited quantity at the global market when it could have been taken care of locally.
“As a country, we should be very grateful to Dangote Refinery and thank God that it is producing at a time like this. It is therefore laughable for anybody or group to blame Dangote for the increase in prices of products. On the contrary, it is because of Dangote Refinery that we have adequate supplies and not paying higher than the prevailing prices.
“Any group that acts on illiteracy, misinformation and instigation against Dangote Refinery will be adequately confronted by PANEP. It is for the Federal Government therefore to know that it cannot afford to think of only gains at the expense of the masses. It should give a little back to the local market within this period in order to ameliorate the suffering of the masses.
“Let us not forget that beyond the rhetoric of the main actors in this war, the entire situation remains very complicated. And in the next few days, the price of PMS could reach N2,000 if the war does not end. This situation will certainly lead to a national crisis of chaotic dimension. The Federal Government should not wait for such a scenario before looking for a knee-jerk approach.
“The time to act is not just now, but immediately. Let the local refineries be fed appropriately and at a subsidised price so that local prices of petrol can be significantly reduced. We shall continue to work with all stakeholders to ensure national economic prosperity. But we will not hesitate to align with the suffering masses of the Nigerian people should this hardship spiral out of control”
