The Role Of Mele Kyari in Petrol Price Hike: NNPC Finally Clarifies

NNPC Clarifies the Role of Mele Kyari in Petrol Price Hike
NNPC Clarifies the Role of Mele Kyari in Petrol Price Hike
The Nigerian National Petroleum Company Limited (NNPC) has responded to the growing wave of protests and public outcry over the recent surge in petrol prices, clarifying that Mele Kyari, the Group Managing Director of NNPC, is not directly responsible for the price increase.

Petrol prices have risen to N855 per litre, prompting significant backlash from labor unions, civil society groups, and ordinary Nigerians already burdened by high living costs.

The price hike, attributed to several factors, has sparked widespread unrest across the country. One key contributor to the increase is the termination of NNPC’s exclusive purchase agreement with Dangote Refinery, which previously allowed the company to buy petrol at subsidized rates. As the NNPC now buys fuel at market prices, consumers are feeling the impact as higher costs are passed down the supply chain.

Joe Ajaero, President of the Nigeria Labour Congress (NLC), expressed strong discontent over the price hike, pointing out that the labor union’s decision to accept the N70,000 national minimum wage was based on government assurances that fuel prices would not rise further. “We are filled with a deep sense of betrayal as the federal government clandestinely increases the pump price of PMS,” Ajaero stated.

In response to the public outcry, protests have erupted across Nigeria, with various groups, including the National Association of Nigerian Students (NANS), demanding a reversal of the increase. NANS has called for a nationwide shutdown, accusing NNPC of “gross incompetence” and condemning the financial burden placed on Nigerians as transportation and commodity prices rise due to higher fuel costs.

Many Nigerians have taken to social media to vent their frustrations, expressing concerns about the broader economic consequences. The price hikes are seen as exacerbating inflation, making basic goods and services unaffordable for the average citizen. One protester remarked, It’s not just about petrol, it’s about the future of the economy. This could push more Nigerians into poverty.”

NNPC officials, however, have distanced Mele Kyari from any direct involvement in the pricing decisions. They explained that petrol prices are influenced by global market dynamics and the operational costs of refining and distributing petroleum products. “Mele Kyari does not set prices; he operates within a framework established by market conditions and government policies,” an NNPC spokesperson clarified.

The company also emphasized that efforts are underway to stabilize the supply chain and minimize price fluctuations. NNPC is working towards enhancing local refining capacity and improving the efficiency of its operations to reduce Nigeria’s dependency on imported refined products.

However, these assurances have done little to quell public discontent. For many Nigerians, the increased petrol prices are a reminder of the country’s ongoing economic instability. Ajaero raised concerns that these price hikes could lead to widespread unemployment as businesses face higher operational costs. “Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly,” he remarked.

As protests continue to unfold, labor leaders have indicated their intention to engage in dialogue with government representatives to advocate for policies that prioritize consumer welfare and ensure fair pricing mechanisms within Nigeria’s oil sector.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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