The Trade Union Congress (TUC) has advised the federal government to give a special foreign exchange (FX) rate to the Nigerian National Petroleum Company (NNPC) Limited to crash the price of petrol.
Festus Osifo, TUC president, spoke on Channels Television’s
‘Politics Today’ programme on Monday.
On September 3, the NNPC increased the price of premium
motor spirit (PMS), also known as petrol, across its retail outlets to above
N850.
The hike came amid petrol scarcity and long queues across
the country.
Prior to this, the national oil company admitted to
shortages due to its inability to sustain petrol supply due to a $6 billion
debt it owes suppliers.
Speaking on the situation, Osifo said the hike is fueled by
the naira devaluation.
Osifo, who is also the president of the Petroleum and
Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said NNPC should
be granted a special forex rate of about N1,000 per dollar instead of the
N1,600/$ official rate.
With this, he said the cost of petrol importation by the
state-run company will crash and fuel prices will drop from the current pump
price of over N900 to N600, depending on the part of the country.
“If you give a special rate to NNPC, you don’t need to pay
for subsidy anymore. The same special rate that was given to Dangote (refinery)
to sell, a special rate was given,” he said.
“Before now, we have had our Customs giving special rates.
So, that special rate should be given in that sector.
“With the sale of crude to Dangote in naira, and you decide
that crude you are selling to Dangote in naira, the exchange rate will be
N1,000 to a dollar.
“If you do that, all
marketers can go to Dangote and sell at a reduced rate compared to what is
practicable today.
“It is about the exchange rate and that is what we have
propounded over time.”
He also warned that if the government does not take an
immediate decision, “the effect of the fresh hike in petrol prices will
reverberate across the length and breadth of Nigeria”.
When asked if the union would hit the streets to protest
over the hike, Osifo said the union would meet to decide their next line of
action.
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