Petrol: N145 Per Litre For Who?

By Ikeddy ISIGUZO
The security and welfare of the people shall be the primary purpose of government – Section 14 (2b) of the 1999 Constitution
• WHY is it always easy for us to choose sentiment over logic? 
• Why would anyone celebrate “deregulation of price of petrol?”
• What are the bases of the celebrations? 

(pix:SR)

• How are MARKET FORCES supposed to flow through fuel at N145 per litre eventually downwards? 
• Why do we often situate our arguments by referring to price of fuel abroad?
• Where is the security and welfare of Nigerians in this decision?
• Has the primary purpose of government changed?
• Who changed it?
• What replaced it?

Some basic FACTS:
• Fuel is still imported.
• Price of fuel is based on US Dollars (or Chinese Yuan Renminbi)
• If the Naira falls against the US Dollar (or Chinese Yuan Renminbi), the price of fuel will not be N145 per litre
• If the Naira gains against the US Dollar (or Chinese Yuan Renminbi) there are no guarantees that the price would go below N145 per litre
• There is scarcity of foreign exchange meaning that N145 per litre will not work
• “Everybody can bring in petrol” is not true, regulatory strictures are plenteous
• Our porous borders mean that the products would end up other countries willing to pay more than N145 per litre 
• Our refineries never work at any reasonable capacity
• An increase in the price of fuel doubles prices of most goods and services, food, transportation
• Inflation will spiral

• Budgets of organisations and individuals are already off the span

Unlike elsewhere:
• We generate our own electricity
• We provide our water for all purposes
• We use cars or petrol-powered public transportation
• There are no train services (intra-city, inter-city) with capacities to meet our needs
• Hospitals, businesses, schools, generate their own electricity, mostly with petrol
• Millions of our people are unemployed
• There is no social welfare scheme
• Housing, health, all the individual’s private affairs
• Rural Nigerians depending on farms products, with its frails, will pay N145 per litre

History
In 1992-93, the NNPC ran a campaign hinged on selling fuel at N5 per litre to revive the refineries, create jobs, improve public transportation, end epileptic electricity, and build better facilities for education and health services. Nigerians said no because few efforts were being made to build refineries or revive the existing ones. 
• Has any new refinery been built since the 1993 campaign? 
• Price of fuel keeps going up with market forces as sheer excuse.

Solution 
The solution does not lie in what fuel costs now. The future is more important. 
If our refineries work, we can cut off the padded costs of petrol - freight, insurance, demurrage, pumping from Atlas Cove, other charges. 
We would create jobs. 
• Who pays workers at our non-functioning refineries? 
• Have the workers been sacked for the years these facilities never produced? 
• Will Nigeria still not be paying them now that government has fully embraced importation of fuel (not deregulation)?
There is no basis for the current, unbridled enthusiastic embrace of a policy that amounts to government abdicating its responsibility to the people while cutting fat portions for members of its elite corps.
PS: At N145 per litre, the minimum wage of N18, 000 can buy 124 litres of petrol (if the dispensing pump has not CHANGED) which gives the worker a daily use of four litres. I am assuming the worker spends his salary only on fuel.