President Bola Ahmed Tinubu has responded to speculations surrounding a potential surge in premium motor spirit (PMS) prices due to forex market volatility, asserting that no such plans are in motion.
In a statement conveyed by his media aide, Ajuri Ngelale, the President dismissed rumors and confirmed that the deregulation policy remains in place and will not be overturned, as suggested by some quarters.
Ngelale made it clear, stating, “The official position is that there is no increase in prices at this time, and that Mr. President is convinced, based on the information before him, that we can maintain current pricing without reversing our deregulation policy by swiftly cleaning up existing inefficiencies within the midstream and downstream petroleum sector.”
The recent warning by the Nigeria Labour Congress (NLC) that it might initiate a nationwide strike without prior notice if the government approved further pump price hikes prompted the President’s response. The NLC had expressed concerns about the forex market volatility, with the US dollar reaching an exchange rate of N945.
The Presidency confirmed that daily premium motor spirit consumption had dropped from 67 million litres to 46 million litres, attributing part of the downstream oil sector’s crisis to alleged misconduct within the Central Bank of Nigeria during Godwin Emefiele’s tenure as the former Governor.
The President’s spokesman emphasized President Tinubu’s determination to maintain competitiveness within the petroleum industry sub-sectors. Ngelale stated, “The President is determined to ensure that our policy drawn up as well as policy implemented follows the cue that there will not be any single one entity dominating the market.”
Reiterating that the market has been deregulated and liberalized, the Presidency emphasized the administration’s commitment to moving forward in this direction and addressing inefficiencies within the midstream and downstream petroleum subsectors. The intention is to maintain current prices without resorting to reversing the deregulation policy.
Furthermore, Ngelale provided graphics showing the cost of refined petroleum motor spirit at the pump in neighboring West African nations. Nigeria’s current average of N568 to N630 per litre is comparatively affordable, with other countries in the region recording higher prices.
While acknowledging that challenges persist, Ngelale called for patience from Nigerians, assuring transparency and openness in addressing the issue. The President’s team plans to share insights into the nation’s forex liquidity situation, a result of alleged mismanagement by the Central Bank of Nigeria in previous years.