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Get Ready For Another Hike In Petrol Price —– FG

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As crude price hits almost $60/barrel, the Federal Government has asked Nigerians to prepare for another hike in petrol price because the international price has a direct bearing on the cost of refined products.

The Minister of State, Petroleum Resources, Mr Timipre Sylva, gave the hint at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP).

According to him, “the higher the price of the crude oil at the international market, the higher the price of refined products like petrol, diesel and the rest”.

He said that the increase would reflect market realities, assuring the citizenry that mechanisms were in place to insulate the consumers from predatory practices of oil marketers.

In four months, the pump prices of petrol have risen from N121.50 to N123.50 per litre in June; N140.80 to-N143.80 in July; N148 to N150 in August; N158 to N162 in September and N163 to N170 in November.

Sylva said there was no way the Nigerian National Petroleum Resources (NNPC) could shoulder any form of subsidy because it was never provided for in the 2021 budget since the Federal Government had ditched the subsidy regime since last year.

Since November 13, 2020, when the local pump prices of petrol were last increased, the price of the international oil benchmark, Brent crude, has increased from $41.51 per barrel to $59.34 per barrel last weekend.

In June 2020, the Federal Government leveraged on the COVID-19-induced slump of global crude oil prices to totally yank off subsidy, to enable it free funds for other areas of the economy.

In December 2020, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kolo Kyari, disclosed that from 2016 to 2019, the Federal Government had spent over N3 trillion subsidising the pump price of petroleum products, particularly petrol, insisting that the subsidy regime did not benefit the masses that the President is passionate about.

Oil marketers in December expected another upward adjustment of PMS prices to reflect the further rise in crude oil prices, which closed at $51.22 per barrel on December 31.

However, a N5 reduction in petrol price, effective December 14, was announced by the Federal Government. It did not go down well with them as they saw it as an interference in price-fixing.

While the crude oil price is a strong determinant of the final cost of petrol, Nigeria has continued to suffer low domestic refining capacity, forcing the government to import the products.

Some marketers are predicting that the pump price of petrol should be around N190/litre as against the current price of between N162-N165/litre. They have expressed their concerns over the non-implementation of the full deregulation of the downstream petroleum sector as the pump prices of petrol have remained unchanged for over two months, despite the recent increase in global oil prices.

Oil marketers are peeved over their inability to access foreign exchange at the official rates to import products.

Daily Sun findings reveal that some NNPC stations in Abuja, at the weekend, quietly adjusted their pumps to N162/litre from N158/litre.

The President of the National Association of Road Transport Owners (NARTO), Mr Yusuf Lawal Othman said the body was awaiting the Federal Government’s pronouncement on the new bridging cost (freight rate) of N9:11k per litre, as against the current rate of about N7.51/litre.

According to him, the new bridging cost was long overdue considering the unsavoury environment members of the association operate in.

Analysts note that once the new bridging cost comes to play, it will increase petrol cost to a new price, regardless of crude cost.

Meanwhile, Nigerians may face another round of horrendous petrol scarcity, as depot owners reportedly shut down their operations on Monday, claiming that they have run out of products.

Sources at the Independent Petroleum Marketers Association of Nigeria (IPMAN) also noted that the depot owners were temporarily winding down operations because of an anticipated increase in petrol price, which reverberates on their operations as well.

The confusion has been worsened by the silence of the Pipeline Products Marketing Company (PPMC), that is yet to unveil the new dealer price to oil marketers.

Daily Sun learnt that depot owners have raised their price by N7. In context, depots have increased their price from N148 to N155.

It was gathered that IPMAN was yet to direct its members to hike their pump price since it was not certain that the depots carried out a legitimate adjustment of their prices.

The cost of petroleum products is one of the components of the total landing cost of petrol in the pricing template of the Petroleum Products Pricing Regulatory Agency (PPPRA).

Freight cost is also one of the components of the total landing cost in the agency’s pricing template.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies pledge to continue to cut down on crude oil inventories and expected increase in global demand due to the roll-out of COVID-19 vaccine in some major economies.

BIG STORY

Federal Government Declares Public Holiday For Christmas, New Year Celebrations

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The federal government has declared December 25-26, and January 1, 2025, as public holidays.

The public holidays are to commemorate the “Christmas,” “Boxing Day,” and “New Year’s Day” celebrations, respectively.

Olubunmi Tunji-Ojo, the minister of interior, announced the dates in a statement signed by Magdalene Ajani, the ministry’s permanent secretary.

He extended his greetings to Nigerians for the holidays and encouraged them to use the festive period to reflect on the values of “love,” “peace,” and “unity” that the season signifies.

He further emphasized that the yuletide is a time to foster harmony and strengthen bonds across families and communities.

“The Christmas season is a good moment for both spiritual reflection and national renewal. As we celebrate the birth of Jesus, the Prince of Peace, let us demonstrate kindness and extend goodwill to one another, irrespective of our differences,” the statement reads.

The minister also urged Nigerians to remain committed to the peace, unity, and progress of the nation.

He assured citizens of the federal government’s commitment to peace, security, and prosperity across the nation.

Tunji-Ojo added that the “Renewed Hope Agenda” of the President Bola Tinubu administration will usher in a prosperous economy that will be the envy of the world.

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Tinubu’s 50% Transport Reduction Scheme May Begin Tuesday

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The proposed 50 percent interstate transport fare price slash by the Federal Government, initially planned to commence on December 20, 2024, may now begin on December 24.

The slash is aimed at alleviating high transport costs during the Yuletide season.

Recall that the Federal Government, through the Ministry of Transportation, announced last Thursday that it had reached an agreement with stakeholders in the road transport sector to support Nigerians who will be travelling during the holiday season.

The government stated that it would cover 50 percent of the transport fare for travelers, alongside the commencement of free rail transportation for citizens on December 20, 2024.

This initiative, according to the Director of Press and Public Relations, Federal Ministry of Transportation, Olujimi Oyetomi, was part of President Bola Tinubu’s broader effort to provide transportation palliatives for Nigerians celebrating Christmas and New Year.

Oyetomi said that the agreement was signed between the Federal Government and key transport stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, and the Association of Luxurious Bus Owners of Nigeria, among others.

The ministry’s spokesperson explained that under the arrangement, passengers traveling from Abuja and Lagos (Oshodi) to various destinations across the country would pay only half of the usual fare.

A senior official in the transportation ministry, speaking on condition of anonymity, stated that while the rail initiative was set to transport 340,000 Nigerians during and after the Yuletide, details about the road transport component remained unclear.

“The minister will most likely unveil the scheme tomorrow (Monday) at the Eagles Square, and detailed information will be provided accordingly.

“We were supposed to commence on the (December) 20th, but due to some imperfections, it has been delayed. By God’s grace, it should start on Tuesday. However, the MoU and other agreements have been adequately signed.”

When contacted, the Chief Executive Officer of God is Good Motors, Enahoro Ekhae, confirmed signing the MoU but noted that the scheme had not yet started.

“Yes, we indeed signed an MoU, but we are yet to begin the implementation,” he said.

When asked about the delay, he responded, “It is the government that can explain that. We, as GIGM, will begin once we reach an agreement with the government to start.”

Meanwhile, it was learned from the Federal Ministry of Finance on Sunday that the initiative was delayed due to funding challenges.

The programme, which was expected to begin on December 20, has been stalled as transport unions await payments promised under the scheme.

Sources at the finance ministry told one of our correspondents that efforts to secure funding were ongoing, with stakeholders hopeful for a resolution in the coming days.

The initiative, which aims to provide subsidized transportation through partnerships with transport unions, was supposed to start at Eagle Square in Abuja but failed to take off.

“We have signed the MoU, but the minister believes that the transport unions should receive their payments before starting, so that we can maintain accurate records,” a source at the finance ministry explained.

“The transportation minister has been working with the finance ministry to secure the funds, including those for the rail component.”

While the rail part of the initiative continues because it is managed solely by the Federal Government, road transport remains stalled due to the lack of government-owned buses.

“The route involves transportation unions. The Federal Government does not have buses to operate the system. We want the transport unions to take ownership and run the program. They are expected to account for the money given to them, as we have monitoring mechanisms in place,” the source clarified.

Despite ongoing efforts to secure funds, the process has been slow. “He (the minister) has been going to finance. He couldn’t secure the funds. That’s why we couldn’t start.”

The plan includes a payment of 50 percent of the agreed average fare to transport unions for each route, covering road trips from Abuja to state capitals and from Oshodi in Lagos to other destinations.

“The government is supposed to pay the transport unions 50 percent of the average fare we’ve already agreed upon for each route,” the source added.

However, no funds have been disbursed yet, leaving transport unions unable to mobilize. “All transport unions with whom we signed the MoU will have to bring their vehicles to Eagle Square. But no one has received any money yet. Therefore, everyone has been asked to remain on hold.”

The source expressed hope that the issue would be resolved soon. “I believe that as early as tomorrow (Monday) morning, the minister will press the Minister of Finance. The finance minister will understand the urgency, as it’s a directive from the President, and they will find a way to release the funds. Then, the process will begin.”

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Inside Ogun: Wife Flees After Setting Cop Husband Ablaze During Dispute In Iperu

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A wife, Sarah Ayinde, is on the run after setting her husband, a special constable with the Ogun State Police Command, Abidemi Ayinde, ablaze in the Iperu area of the state.

A source, speaking anonymously, said that the incident occurred on December 12 after the couple had engaged in a minor dispute.

The source, on Sunday, disclosed that the dispute escalated, and the wife resorted to setting the cop on fire in a retaliatory attempt.

The source said, “There is an incident in Iperu. A police constabulary was set on fire by his wife. They argued, and the wife set him on fire. He is currently hospitalised.”

Confirming the incident in a telephone conversation (with The Punch), the spokesperson for the state Police Command, Omolola Odutola, on Sunday, said that the victim was hospitalised following the incident.

She narrated that efforts were underway to apprehend the wife.

“On December 12, 2024, at approximately 10:00 a.m., an attempted murder incident occurred in Iperu. Reports indicate that at No. 20 Igboore Street, Abidemi Ayinde, a male special constable with the police division, was set on fire by his wife, Sarah Ayinde, following a minor dispute.

“The victim was quickly taken to the Bolawatife Hospital for medical attention and is currently in a stable condition.

“The suspect, Sarah Ayinde, remains at large, and efforts are underway to apprehend her. The division’s crime branch is conducting further investigations into the matter,” Odutola said.

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