Peter Obi, the Labour Party’s candidate in the 2023 presidential election, has criticised the recent surge in petrol prices, describing it as “unfortunate and insensitive.” Obi’s remarks were made in a statement titled “Reversing the Sudden Fuel Price Increase,” which he shared on his X.com account on Saturday.
According to reports, the recent hike has led to a sharp increase in transportation costs in the Federal Capital Territory, following a significant rise in the price of petrol by some stations of the Nigerian National Petroleum Company Limited (NNPCL) in Abuja on Wednesday. The price of petrol across various NNPCL stations jumped from N897 to N1,030 per litre, marking a 14.8% or N133 increase in just one month. This was the second fuel price rise within a month, amplifying concerns over the affordability of transportation and basic goods for many Nigerians.
Obi expressed deep concern over the broader implications of the price hike, warning that it would have severe, long-term consequences for the country’s already struggling economy and the well-being of its citizens. He pointed out that the federal government’s economic policies have placed many Nigerians under significant financial strain. Obi called on both the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, and President Bola Tinubu to take immediate action to reverse the price increase.
In his statement, Obi said: “As Nigerians continue to endure extremely difficult economic conditions, largely due to the Federal Government’s wrong policy choices, the NNPCL has once again raised the price of fuel without providing any explanation. This is both unfortunate and insensitive, especially considering the far-reaching negative consequences for our economic survival and the well-being of our people.”
Obi further criticised the manner in which the NNPCL, a corporation now functioning as a limited liability company, has managed the price hikes. He raised concerns about the lack of clarity over the roles and responsibilities of the NNPCL and the regulatory bodies overseeing the oil sector, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). According to Obi, the confusion surrounding these entities raises questions about who is actually responsible for regulating the sector, particularly as the federal government claims oversight of both the NNPCL and the regulatory bodies.
“It is troubling that, in this arrangement, there is ambiguity over who is regulating whom,” Obi said. “With the unprecedented hardship Nigerians are facing, the responsibility for providing a clear explanation for this price increase, offering alternative solutions, and, most importantly, reversing the sudden hike, rests firmly with the Minister of Petroleum Resources and the President.”
Obi also expressed his hope that President Tinubu, who is currently on a working vacation, would act in the best interests of the Nigerian people. He criticised the President for seeming to take a detached approach to the crisis, stating that imposing such a drastic measure while on vacation shows a disregard for the public’s suffering. “To casually inflict such a draconian measure from the comfort of an annual vacation reflects a lack of empathy for the people and their welfare,” Obi said. “A new, more compassionate Nigeria is indeed possible, but only if the government takes decisive, thoughtful action.”
The fuel price increase has drawn widespread criticism, including from labour unions and independent marketers. Joe Ajaero, President of the Nigeria Labour Congress (NLC), condemned the NNPCL’s move to raise fuel prices, arguing that it is inappropriate for a registered private company to dictate the price of such a crucial commodity for the Nigerian populace.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also voiced its concerns, threatening to halt operations nationwide due to the high cost of petrol being sold to its members by NNPC. On Thursday, IPMAN revealed that the cost of petrol supplied from the Dangote Petroleum Refinery to NNPC was around N898 per litre. However, NNPC was selling the same product to independent marketers at N1,010 per litre in Lagos, exacerbating the financial burden on both the marketers and consumers.
The price hike, coming on the heels of other economic challenges, has raised alarms about Nigeria’s ability to manage its petroleum sector effectively and transparently. The confusion and discontent surrounding the current situation underline the urgent need for clearer regulation and more coherent policy-making to avoid further damage to the economy and public trust.