The Federal Government yesterday disclosed that the current pump price of petrol would be adjusted upwards with effect from January 1, 2009.
However, it said the modalities of what will be the new price regime would be worked out by the organised labour and other stakeholders between now and the effective date.
Minister of State for Energy (Petroleum), Odein Ajumogobia, SAN who made the disclosure in Abuja, stated that the agreement between the Federal Government and organised labour unions that there would be no increase in the prices of petroleum products until June 2008, will elapse on June 24.
He however stated that government had extended the moratorium on the current N70 per litre pump price of petrol ahead of the expiration of the agreement between it and labour with an agreement in principle that the pump price will be adjusted by January 1, 2009.
Ajumogobia said in compliance with that agreement, President Umaru Yar�Adua had graciously accepted to leave the pump price untouched despite the high price of crude oil in the international market with its sprawling effects on food, transportation and other energy related services.
He said: �The Federal Government is pleased to announce the extension of the moratorium on the current N70 per litre pump price of petrol ahead of the expiration of the agreement between it and the organised labour with an agreement in principle that the pump price will be adjusted by 1st January 2009.�
�The constructive engagement of all stakeholders in handling the issue of pump price has yielded this laudable gesture by the Federal Government. The announcement should put to rest the rumours making the rounds that a hike in the pump price of petrol was imminent since the accord reached between the labour and the Federal Government will expire on June 24th 2008.
�I want to urge the organised labour, all stakeholders and indeed all Nigerians to appreciate the efforts of the Federal Government in this regard.
�This gesture also portrays the present administration as responsive to the feelings of Nigerians.�
He stated that the continued subsidy on fuel would cost the government about N500 billion, attributing the reappearance of long queues at filling stations to fears of a petrol price increase.
Former President Olusegun Obasanjo had in the twilight of his administration last year increased the price of petrol from N65 to N75 and increased the Value Added Tax (VAT) from five per cent to 10 per cent.
Following the widespread criticism that greeted the exercise, coupled with a nation-wide strike embarked upon by labour, the incoming government of President Yar�Adua reduced by N5 the pump price of petrol and suspended the implementation of the increase in VAT.
Meanwhile, Petroleum Tanker Drivers (PTD), an affiliate body of the National Union of Petroleum and Natural Gas (NUPENG), has suspended the planned nationwide strike by the group to protest the hike in the prices of diesel and kerosene.
The Zonal Secretary of NUPENG, Tokunbo Korodo confirmed that the decision to shelve the planned action was sequel to the outcome of the meeting, Thursday between PTD officials and the Federal Government.
Consequently, products supply has commenced in earnest as the group urged its members to return to work to prevent fuel shortages.
�After exhaustive deliberation between NUPENG and the Federal Government, our officials appealed to the tanker drivers to return to work and to resume supply fully. The reason is to prevent scarcity of petroleum products that could possibly disrupt businesses in the nation.�
He however stated that the officials are still holding dialogues with government on how to meet the demands of PTD, pointing out that the PTD had held series of meetings with government and that a 21-day ultimatum was issued by the Union, which elapsed without positive response.
Jun72008