The final steps towards increasing the retail price of refined petroleum products began yesterday as the Federal Government met with leaders of organised labour.
The meeting, it was gathered, was aimed at convincing organised labour on the need to effect an increase in the prices of petroleum products following a decision to that effect already taken by government.
This is said to be preparatory to the stakeholders meeting usually called by the Petroleum Products Pricing and Regulatory Agency (PPPRA) for price increases, where the bracket intended for the price increase will be deliberated.
The meeting was chaired by the minister of state for energy (petroleum), Odein Ajumogobia, who led the representatives of government made up of the special adviser to the president on petroleum, Emmanuel Egboga, permanent secretary of the ministry of energy, Sadiq Mahmood and director of trade union service who represented minister of labour,
Labour�s representatives led by Abdulwaheed Omar, president, Nigeria Labour Congress (NLC), also included Peter Esele, president-general of Trade Union Congress (TUC), Owei Lakemfa, NLC information officer, Olaitan Oyerinde, NLC deputy secretary and Peter Ozo-Esol, NLC director of research and chief economist.
Ajumogobia said the meeting was convened because he thought there should be a meeting to fix a stakeholders� meeting that would discuss the issue of petroleum pricing.
This, he said, was in recognition of the fact that it is an issue of concern to all Nigerians and affects all hence the need for all stakeholders to come up with suggestions with a view of ensuring stability and sustainability in the very important sector of the economy.
“What I said in my letter is that I thought that we should all take the initiative in fixing a stakeholders meeting to discuss this issue of petroleum pricing. It is really designed as a meeting between representatives of the federal government and labour, a private meeting for us to look at the issue.
“The agenda is just to give a structure to the meeting. But the purpose is not to discuss the present agenda. It is just a preliminary meeting to determine the timing and composition of a larger and broader stakeholders meeting, who should attend that meeting, what and when we should have it in terms of convenience for you and government and address some of the issues that we should address at such a stakeholders meeting and prepare for it,” he said.
Business Day gathered that labour�s representatives had queried government�s decision not to provide subsidy in the 2008 budget and the practice of refining Nigerian crude oil outside the country, including the over 450,000 barrel per day meant for local consumption and sell to Nigerian public at international rate.
Owei Lakemfa, NLC information officer who spoke on labour�s stand said, “the primary option is for government to put the 450,000 barrel per day meant for local consumption at a rate that is not subjected to international price variation or provide for adequate subsidy to augment the prices after refining outside the country.”
He however expressed optimism that the present administration will consent with labour “to draw out a system to sustain the price of petroleum products far beyond June 2008”
The minister, however, said it was time for all to put the conflicting statements being made on petroleum prices to bed once and for all and end all the conflicts that do not serve anybody�s interest.
According to him, this is because government, like labour, would like to have some level of sustainability and stability in the sector because it is good for business, commerce and everyone. He said it is also good for planning especially as no one can plan if people are unable to determine what an important index of the economy will be in the future.
He however expressed optimism that the present administration will consent with labour “to draw out a system to sustain the price of petroleum products far beyond June 2008”
Other officials on the government delegation were the director of the Department of Petroleum Resources, executive secretary of the Petroleum Equalisation Fund, general manager of the Petroleum Products and Marketing Company (PPMC) and the executive secretary of the PPPRA.
Sources close to the minister told Business Day that the minister said he will brief the Federal Executive Council (FEC) on the outcome of yesterday�s meeting and that the next meeting would hold inMarch 2008 to finalise the list of stakeholders for the meeting.