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Vice President, Shettima Summons Lokpobiri, Kyari, Ribadu and Others Key Officials Over Petrol Price Hike

Published by Tope Fakinlede on September 5th, 2024.

Vice President, Shettima Summons Lokpobiri, Kyari, Ribadu and Others Key Officials Over Petrol Price Hike

Kashim Shettima

Vice President Kashim Shettima has convened a meeting with Senator Heineken Lokpobiri, Minister of State for Petroleum Resources; Mele Kyari, Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL); and National Security Adviser Nuhu Ribadu to discuss the recent spike in petrol prices.

The meeting, held at the Presidential Villa in Abuja on Thursday, addresses the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. On Tuesday, NNPCL raised the pump price from ₦568 to between ₦855 and ₦897 per litre, depending on the location. This adjustment follows persistent fuel shortages and financial issues faced by the company.

The price hike has led to widespread dissatisfaction, with some private suppliers charging as much as ₦1,200 per litre. This increase has been met with criticism from several groups, including the Nigerian Labour Congress (NLC), Trade Union Congress (TUC), Nigerian Bar Association (NBA), and Nigerian Medical Association (NMA). They argue that the rise exacerbates the economic difficulties faced by Nigerians.

NLC President Joe Ajaero has condemned the hike, accusing the government of betraying the labor movement and demanding an immediate rollback of the price increase. He also called for the release of individuals detained during recent protests and a halt to policies that worsen economic hardship.

Despite these challenges, presidential aide Bayo Onanuga defended the price adjustment, stating it was necessary to support NNPCL, which is struggling financially. He expressed hope that the upcoming Dangote refinery will alleviate some of the pressures on the fuel market.

Since assuming office, President Tinubu has pursued economic reforms under his “Renewed Hope” agenda, which includes ending fuel subsidies and liberalizing the naira. These changes are aimed at stabilizing the economy and attracting investment, though they have contributed to a rise in inflation, which hit 34% in June.

As the impact of the fuel price increase begins to be felt in transport and food costs, the government has increased the minimum wage for public sector workers in an effort to mitigate the cost of living.