PDP Reps Caucus Wants Immediate Reversal Of Fuel Price, Electricity Tariff

The Peoples Democratic Party (PDP), Caucus in the House of Representatives has called on President Muhammadu Buhari to as a matter of urgency reverse pump price of fuel and electricity tariff to meet the yearnings of Nigerians and realities of the moment.

The caucus chaired by Rep. Kingsley Chinda (Rivers) reached the resolution at its 18th virtual meeting, where it reviewed issues of national interest particularly, the recent cost increases by FG. This includes increase in pump price of fuel and electricity tariff.

Others include Stamp duties, telecommunication charges and Implementation of 7.5% Value Added Tax (VAT).

In a statement released by the caucus late Sunday night, it noted that: “The COVID-19 pandemic has no doubt inflicted great hardship globally and have seen most economies fluttering”.

“Most if not all responsive governments have devised innovative people-oriented interventions and opening new frontiers to reducing tax burdens on their citizens to stimulate their economies and cushion the unfortunate effect of the pandemic.”

“Conversely, the Nigerian Federal government led by President Muhammadu Buhari has found this inauspicious time to implement what can only be described as stranglehold economic policies on the lives of perceived helpless Nigerian citizens.”

“More disturbing is the fact that the review in electricity tariffs and fuel prices is not commensurate with an increase in salary or income of the people”, the statement said.

On the issue of increase in pump price, it said that the increase inflicted on Nigerians will be the third hike since the advent of this administration.

“From an inherited pump price of N85 per litre, they have systematically increased it to an exorbitant, strangulating cost of N162 per litre. All these have been achieved without consultation or engagement with the Nigerian people, at whose pleasure the president serves”.

Stressing further, the statement recalls that “in 2015 when this government took over the mantle of leadership, cost of crude was 93.17 to 48.66 USD; pump price of fuel in Nigeria was N85 per litre and about N500 Billion was said to be paid as subsidy annually”.

“In 2020, crude sells for 39.68USD the pump price of fuel is N162. Ordinarily, lower cost of crude should entail lower cost of fuel; At every increase, Nigerians are told that subsidy payment has been removed and that price of fuel will be determined by market forces.”

“Paradoxically, in 2020 the government budgeted 450B for subsidy, whilst PPPRA gave a realistic estimate of 750.81B to be spent by NNPC as subsidy in 2020, higher than N500 Billion even with almost 95% increase in pump price.”

“Furthermore, President Buhari also promised to “Revive and reactivate our minimally performing refineries to optimum capacity and stabilise oil price. This is a promise far taller than his imagined economic prowess. The state-owned refineries are operating at a ridiculous fraction of their capacities. Nigeria (an oil producing country) continues to import more than 90% of her finished products.”

Recall that the Information Minister, Lai Mohammed in his attempt to defend the increase in pump price of petrol said that “Despite the recent increase in the price of fuel to N162 per litre, petrol price in Nigeria remains the lowest in the west/central African sub-region”.

The caucus said that; “What Minister Lai Mohammed conveniently left out is the “general rule that richer countries have higher price for gasoline, while poorer countries and countries that produce and export oil have significantly lower prices. The difference in prices across countries is due to various taxes and subsidies they decide to impose”.

“Hon. Minister didn’t take into consideration the fact that most of these other countries with higher cost have functional and reliable systems in place – public transportation, power and social security for its citizens; their standard of living and minimum wage are far above Nigeria’s; have constant and affordable power supply, and their citizens do not depend on alternative power generation like Nigerians do with generators”, the caucus pointed out.

It explained that Lai Mohammed failed to draw a comparison between the cost of PMS in Nigeria and other traditional oil producing but poor countries. Nigeria sells at 0.39USD, higher than Algeria (0.36USD), Angola (0.26USD) and Sudan (0.14USD), asking: “On what basis then, is the comparison made by Minister Lai”?

“More worrisome is that this increase is coming at such a time when, the masses are also faced with a hike in the prices of food, especially the most basic staple food items (rice. garri and yam) yet the Government continues to live in self-denial claiming that there is a reduction in the cost of food items.”

The Government rather than alleviate the suffering of citizens, chose to gift Nigerians a pre-October 1 gift with an increase in the prices of fuel, electricity tariff and full implementation of 7.5% VAT”, the statement added.