How FG caused fuel price hike – PENGASSAN

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The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has laid blame for the fuel price hike on the doorstep of the federal government.

PENGASSAN President, Festus Osifo shut down claims by government that the pump price hike is a fallout of increase in crude oil price in the international market.

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Osifo in an interview he granted Channels Television said the federal government was economical with the truth adding that the increase was the consequence of its devaluation of naira in recent times.

 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.

 “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.”

Continued: “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.”

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