N97 Pump Price For Petrol Too High, Says Idika Kalu

... As TUC Wants Speedy Passage of PIB
 
SAN FRANCISCO, January 24, (THEWILL) - Former Minister of Finance during the draconian regime of Gen. Ibrahim Babangida, Dr. Kalu Idika Kalu has said the N97 per litre pump price of petrol as fixed by the Federal government is still high for the average Nigerian to manage under the present state of the nation’s economy.

This is just as the Trade Union Congress of Nigeria (TUC) has called on the Federal government to ensure that a robust Petroleum Industry Bill (PIB) is passed into law without delay.

Kalu who made the submission Tuesday in Abuja when he appeared before the Hon. Farouk Lawan led House of Representatives ad hoc committee on the management of subsidy regime, said based on his research, it could have been lower. In his words, “the N97 fuel price is still high.”

He said the importation of fuel products by Nigeria is a shame, advising that the only way to come out of the present precarious challenge is to get the nation’s refineries back on track.

The former minister insisted that for the refineries to attain optimum performance, experts who are authorities in the field must be allowed to run the business.
 
Kalu said he attended today’s session to throw more light on the subsidy policy which he said he authored during his reign as finance minister adding that his name had come up in an earlier submission by a participant at the public hearing.

Meanwhile, the President General of the TUC, Comrade Peter Esele who also appeared before the committee Tuesday submitted that the passage of a strong PIB would solve the challenges of the downstream and upstream sectors of the petroleum industry.

“Government should as a matter of urgency, ensure that a robust Petroleum Industry Bill (PIB) that would solve the problems of both the downstream and upstream sectors of the petroleum Industry is passed into law,’’ he stated.

Esele said the passage of the bill would go a long way “in optimising the benefit to the people of the oil and gas sector.”

The TUC president applauded the task force committee on PIB recently set up by the minister of petroleum, Mrs Diezani Alison – Madueke with a mandate to produce a clean and clear draft of the bill.

He however called for the expansion of membership of the committee to include more labour representatives so that the various components of the bill would be exhaustively examined and brought in line with current and future realities.

Speaking further, Esele advised the federal government to commence work on the “three Greenfield refineries it proposed in order to expand existing capacities thus making it possible for us to lay to rest the monster called fuel subsidy.’’

The labour chief maintained that it is not debatable that regulation of the downstream sector would encourage investment, adding however that it (deregulation) has to be strategised and carried out to meet its aim.

“It is not disputable that deregulation of the downstream sector will encourage investment on new refineries and product reception and distribution infrastructure with all the attendant benefits.

“However, deregulation and or subsidy removal have to be planned and executed very carefully so that the desired objective is attained,” he said.

Esele expressed worry that a shoddy implementation could mean a deplorable setback for all stakeholders in the industry (Oil Sector).

He urged the government to have a definitive agenda for the subsidy programme to guarantee its complete success, which will consequently establish a solid foundation for economic growth of the nation.’’

Reacting to his submission, Chairman of the ad –hoc committee, Farouk Lawan (PDP, Kano)   assured TUC that the Committee would ensure that its position is captured in its report at the end of the hearing.