ABUJA 鈥 Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has accused petroleum marketers of exploiting Nigerians by inflating fuel prices despite a significant drop in global crude oil prices.
PENGASSAN President, who doubles as President of Trade Union Congress (TUC) Comrade Festus Osifo, expressed dismay that Premium Motor Spirit (PMS) is still selling at around N900 per litre, even though the price of crude oil has dropped to between $60 and $65 per barrel.
Osifo, argued that under current international oil market conditions, Nigerians should be buying PMS at between N700 and N750 per litre.
鈥淲hen crude was $80 per barrel, we were paying about N900 per litre. Now that crude has dropped to around $60, there鈥檚 no commensurate reduction in pump price. That clearly shows exploitation,鈥 he said.
He blamed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to enforce pricing regulations and transparency in the sector.
鈥淭he NMDPRA must carry out its oversight functions effectively and publish daily pricing templates. This is key to curbing abuse and protecting consumers in a deregulated environment,鈥 he stated.
Osifo, emphasised that fuel prices are primarily determined by crude oil prices and exchange rates, noting that since the exchange rate has remained relatively stable, lower crude prices should translate into lower pump prices.
鈥淚t is the duty of the regulator to ensure Nigerians are not exploited. If this trend continues, Nigerians will only bear the burden when prices go up but will never benefit when prices fall,鈥 he warned.
The union leader also expressed frustration over the persistent shutdown of the Port Harcourt Refinery, calling on the Nigerian National Petroleum Company Limited (NNPCL) to adopt the Nigeria Liquefied Natural Gas (NLNG) operational model, which he said had proven successful over time.
鈥淲e鈥檝e advocated this for over 15 years. Government should reduce its shareholding to 49% and allow international investors with refinery expertise to manage the facilities. This will reduce inefficiencies, bureaucracy, and political interference,鈥 Osifo proposed.
He also commented on the recent executive order by President Bola Tinubu aimed at reducing the cost of production in the upstream oil and gas sector, warning that insecurity remains a major cost driver.
鈥淥ne of the main reasons international oil companies are exiting Nigeria is the prohibitive cost of securing facilities. Government must play its part and ensure oil and gas infrastructures are protected,鈥 he said.