Fuel subsidy: NEC considers report today, TUC meets, ASCSN threatens showdown – Newstrends
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Fuel subsidy: NEC considers report today, TUC meets, ASCSN threatens showdown

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3 years ago

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THE Trade Union Congress will today (Thursday) take a position on the planned removal of the fuel subsidy by the Federal Government.

The TUC Deputy Secretary, Nuhu Toro, disclosed to The PUNCH in Abuja on Wednesday, that the congress would hold a meeting over the subsidy issue.

Toro disclosed this ahead of the National Executive Council’s meeting on Thursday.

NEC consisting of including all 36 governors, Vice-President Yemi Osinbajo and other federal officials is expected to consider the adoption of a report by its ad hoc committee on fuel subsidy removal and the increase of petrol price to N302 per litre.

On its part, the TUC deputy secretary said the congress would hold a meeting over the subsidy issue.

He said, “We are having a meeting tomorrow (Thursday). The congress will disclose its decision after that meeting.”

Also speaking with The PUNCH, the Association of Senior Civil Servants of Nigeria opposed the plan by the Federal Government to remove the fuel subsidy and increase the pump price.

The ASCSN President, Tommy Okon, said his association and Nigerians would resist the move.

He said, “Of course, Nigerians are rest assured that they would be defended by our union; that’s why we are here and that’s why we are saying it is a wrong decision to take at this time when workers wages are still stagnant. No increase, they have not made any provision.

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“The transport system has not been looked into. So, you just wake up and say you are removing fuel subsidy. Where in other climes has this been done? Even when you give the subsidy, is it not the wealthy few that still hijacked it? The fight is not about workers, it is what Nigerians must rise and resist.”

Okon stated that the union had already taken a position on the issue, insisting that “no sane government should at this point of economic harshness decide to impoverish the people.”

There have been fears of likely fuel price increase since the Minister of Finance and National Planning, Zainab Ahmed, announced the plan to remove petrol subsidy last June.

An online news medium, The Cable, reported on Wednesday that a committee of the National Economic Council had recommended that petrol should be sold at N302 per litre from February when the government would cease to subsidise the petroleum products in the country.

The report explained that NEC made the recommendations last November. The recommendations were reportedly put forward by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation on the appropriate pricing of PMS in Nigeria.

The report was said to have been presented by Governor Nasir El-Rufai of Kaduna State and the head of the committee.

According to the news report, the committee recommended full deregulation of PMS prices by February 2022 — raising the price by about N130/140 per litre.

It also recommended that all retailers should post PMS prices at all times on a designated website and smartphone app — and they are expected to post price changes no earlier than within 15 minutes of the price change.

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With the recommendations, the committee added that the federal government would save N250 billion per month on petrol subsidy removal.

“At current rates, the PMS subsidy is reducing transfers into the federation by about NGN 250 billion per month, and could, if PMS subsidies are not eliminated, result in deductions of NGN 3 trillion in 2022.

“The large-scale time-limited (six-month) cash transfer proposed as a way of transferring the subsidy “directly to the people” would cost N600bn but would by paving the way for the elimination of PMS subsidies, enable the federation to recover N3tn in revenues that would otherwise go to PMS subsidies.

“If PMS subsidies are eliminated by February 2022, N250 billion in deductions would have been incurred, but the remaining N195 billion in anticipated PMS subsidy deductions could be redirected towards FGN funding of the cash-transfer programme,” The Cable said in its report.

But the Vice-President’s Spokesman, Laolu Akande, said the discussions were still ongoing and NEC had not yet taken any decision.

“While there are indeed ongoing discussions on the issue of fuel subsidy, at no time has NEC made any such resolution,” Akande said on Twitter.

The Federal Government last year revealed plans to remove fuel subsidy even as governors lamented that the monthly amount spent on subsidy was affecting the revenue that should accrue to states from the Federation Account.

However, Senate President Ahmad Lawan on Tuesday said the President told him that he did not order anyone to remove fuel subsidy.

Punch

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CFAO subsidiary LOXEA unveils BYD electric vehicles in Nigeria

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March 31, 2025

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CFAO subsidiary LOXEA unveils BYD electric vehicles in Nigeria

A subsidiary of CFAO Mobility, LOXEA Nigeria, has introduced the BYD brand of electric vehicles to the Nigerian market.

LOXEA has thus become the pioneer in bringing the renowned electric vehicles (EVs) manufactured by BYD (Build Your Dreams) into the country.

BYD is a high-tech multinational company and the world leader in electric and plug-in hybrid vehicles.

“As a Fortune Global 500 enterprise, BYD relentlessly innovates to create a sustainable future,” said the automaker.

“In November 2024, BYD becomes the first company in the world to achieve the milestone with the roll-off of its 10-millionth NEV.

“BYD achieves 4.27 million new energy vehicle sales in 2024, claiming the global sales champion in the third consecutive year.”

Managing Director of LOXEA Nigeria, Mr. Mehdi Slimani, stated, “We are proud to distribute this type of electric vehicle and all its associated services.

“Our upcoming showroom in Victoria Island, Lagos will be a place dedicated to the discovery of BYD vehicles, combining modernity, comfort, and economy of use. “It is very important for CFAO Mobility in Nigeria to participate in this way in the country’s energy transition and support our customers who wish to make the switch to electric.”

Chief Executive Officer of CFAO Mobility, Marc Hirschfeld, spoke on the importance of this launch for both the company and the country, saying, “BYD is one of the world’s leading manufacturers of electric vehicles, with a level of innovation know-how that now matches the expectations of our markets in Africa.

“A whole new ecosystem has to be designed around mobility in African cities.

“This applies not only to individual and corporate customers, but also to stakeholders including urban public transport networks and government agencies.

LOXEA specialises in providing innovative mobility solutions across Africa.

With a commitment to sustainability and excellence, it delivers high-quality mobility services, from electric vehicle leasing to fleet management and infrastructure support.

LOXEA is a leading player in innovative mobility solutions in Africa, offering clients a range of 100% electric vehicles from BYD.

As a pioneer in the deployment of electric vehicle solutions across the continent, LOXEA is bringing to Nigeria a comprehensive suite of services associated with electric vehicles.

This includes the installation of electric charging stations, vehicle maintenance, repair services, and the provision of spare parts.

In addition to providing an inaugural charging station at the upcoming LOXEA Victoria Island showroom, the company is also offering an adaptable solution that allows customers to charge their EVs conveniently at home.

The company says more information on this can be obtained from its website: https://www.byd-nigeria.com/ .

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Petrol price rises to N935 in Lagos

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1 day ago

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March 31, 2025

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Petrol price rises to N935 in Lagos

Petrol marketers across the Lagos metropolis at the weekend raised the pump price of the commodity to between N925 per litre and N935 per litre.

This is in response to the increase in the landing cost of petrol, the stoppage by Dangote Refinery of the sales of the commodity in naira about two weeks ago and the delay in conclusion of negotiation on the naira for crude policy.

Last Monday, the landing cost of the commodity rose to N843.28 per litre from a previous N797 per litre a forthnight ago.

This increase represents an addition of N46 per litre to the landing cost of petrol.

Some filling stations like TotalEnergies sold at N935 per litre; MRS, N925.

According to the major Energy Marketers Association of Nigeria (MEMAN) latest report in its Bulletin, the increase in the landing cost of petrol is a result of the rise in international petroleum pricing in the past two weeks due to the transition from winter to summer specification gasoline (petrol) in Europe, which typically comes at a premium. MEMAN explained that supply constraints have emerged as arbitrage flows into Europe remain unprofitable, and Amsterdam-Rotterdam-Antwerp (ARA) hub stocks have dropped to a 12-week low.
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ARA is a crucial global oil and biofuel hub known for its physical infrastructure, pricing benchmarks, and significant oil consumption.

It added that seasonal refinery maintenance across Europe and a recent fire at the Falconara refinery in Italy have further restricted supply, adding to market tightness and price volatility.

The Association said the foreign exchange rate remained fairly stable, with minimal fluctuations observed over recent periods.

Therefore, the landing cost of petrol, being fundamentally influenced by these elements, is likely to change several times intra-day.

It advised that savings can be achieved through negotiations, access to foreign exchange, and logistics efficiencies, for example, by eliminating Ship to ship (STS) transfer where possible or receiving larger cargos.

MEMAN explained that the landing cost into Apapa/ASPM Jetty is calculated based on the following assumptions: exchange rate, finance charges at 32 per cent per annum for 30 days; STS and related charges; NIMASA charges at two per cent of local STS; NMDPRA at 0.5 per cent MDGIF; NPA and VAT charges covering towage, berthage/mooring, ship dues, cargo dues, contingency, fire coverage, agency fee; other costs at N2 per litre.

 

Petrol price rises to N935 in Lagos

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Dangote Refinery: MRS, other filling stations increase petrol price

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2 days ago

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March 30, 2025

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Dangote Refinery: MRS, other filling stations increase petrol price

The price of petrol has surged to N930 per litre in Lagos and N960 in northern states, following the recent suspension of naira payments for crude oil by the Dangote refinery.

MRS filling stations implemented the new pricing structure on March 28, 2025, marking a N70 increase from the previous rate of N860 in Lagos and N80 higher than the former N880 in the North.

Other fuel retailers have also adjusted their prices, with NIPCO reportedly selling at N930 per litre in Magboro, Ogun State, on Saturday.

According to MRS Oil & Gas, trucks will load products from its Lagos depot and distribute them across the country at varying costs.

The company’s latest pricing document confirms that Lagos has the lowest fuel rate, while northern states face the highest prices. However, the company did not specify whether it sourced its supply from the Dangote refinery.

Under the revised price framework, petrol now costs N930 per litre in Lagos, N940 in other South-West states, and N960 in the South-South and South-East regions, including Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, and Enugu.

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In the North, Abuja, Kaduna, Benue, Kogi, Niger, Sokoto, Kebbi, and Nasarawa will pay N950 per litre, while Zamfara, Kano, Jos, Bauchi, Taraba, Adamawa, Borno, Katsina, Jigawa, Gombe, and Yobe will pay N960.

The Free Carrier Agreement (FCA) price, which determines how much marketers pay before reselling fuel, also differs by region. Lagos has the lowest FCA price at N905 per litre, whereas states like Borno, Taraba, Adamawa, and Yobe have FCA prices around N888 per litre.

The recent suspension of the naira-for-crude initiative by the Dangote refinery was attributed to discrepancies in crude oil allocation. Sources indicate that the Nigerian National Petroleum Company Limited (NNPCL) allocated large volumes of crude to foreign creditors to settle outstanding loans, making it difficult to sustain local transactions in naira.

As a result, independent fuel importers have taken advantage of the situation, increasing depot prices. Industry analysts warn that the rising petrol costs could drive up transportation fares and the prices of goods and services.

Experts suggest that prices may stabilize once the Dangote refinery secures a reliable crude oil supply from NNPCL and resumes selling in naira. Until then, consumers across the country will have to contend with higher fuel costs.

Dangote Refinery: MRS, other filling stations increase petrol price

(PUNCH)

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