PENGASSAN Condemns New Pricing of Fuel, Electricity

The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has expressed its concern over the recent hike in fuel price.

According to the Association, the increase in price was not caused by the global price of crude oil but a deliberate devaluation of the naira by the Federal Government.

The President of PENGASSAN, Festus Osifo, said this on Channels Television’s Sunrise Daily programme which was monitored by one of our correspondents on Friday.

Sylva had stated that the recent rise in fuel price was caused by the increase in global crude oil prices.

However, the PENGASSAN President said the recent hikes were caused by the Federal Government.

He said, “What are the drivers of the pump price? The driver of the pump price is the currency exchange. What has necessitated this today is not actually because of the fact that the product pricing is increasing internationally. The crude oil price relatively in the last six months has been hovering between $40 and $45 per barrel.

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“But what has necessitated this is actually the devaluation. Today, we observe that in the last three months, we have had a 25 per cent devaluation of our currency. The government did it deliberately to have more money.

“They now have more money having done the devaluation and are now passing the burden to us because petroleum is not refined in Nigeria but abroad and everything is priced in dollars. The cost of crude oil, labour cost and all other costs that go into it are priced in dollars.

“So, by the time you bring it to Nigeria and ask us to pay in naira which has been devalued, by the time you factor in the 25 per cent devaluation of the naira, you will have to pay more.”

The PENGASSAN boss further stated that the landing cost which had increased was solely determined by the Federal Government and was paid in naira; hence it ought not to have been reviewed upwards.