The Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has criticised the Federal Government over its handling of petrol prices, saying the actions of government so far do not adequately protect the interest of Nigerians in the energy sector.

The union expressed its displeasure over the current situation in the downstream petroleum sector, particularly the controversy surrounding the proposed price cap for Premium Motor Spirit, PMS, otherwise known as petrol.

The position of the union was made known by its Secretary, Comrade Vitalis Godwin, while reacting to recent developments in the petroleum industry, including the rejection of the proposed price cap by petroleum marketers.

Comrade Godwin was speaking against the backdrop of the decision by petroleum marketers to reject the proposed 1,350-naira-per-litre price cap, insisting that market forces and competition should be allowed to determine petrol prices.

According to NUPENG, the debate over the price cap has once again exposed the inconsistencies and lack of clarity in the implementation of the deregulation policy in the downstream sector.

The union argued that the Federal Government still has a strong influence on the pricing of petrol, despite its claim that the downstream petroleum sector has been fully deregulated.

NUPENG noted that deregulation, by its definition and global practice, is expected to allow market forces, competition and demand and supply to determine prices without government interference or price fixing.

Comrade Godwin explained that if the sector is truly deregulated, government should not be proposing a price cap or attempting to fix the price of petrol at any particular amount.

He described the proposed 1,350-naira price cap as a misleading and deceptive policy, claiming that it would not bring any meaningful benefit or relief to Nigerians who are already grappling with high cost of living.

The NUPENG scribe further alleged that as of today, petrol is already selling at depots across the country for 1,370 naira per litre, which is higher than the proposed price cap being contemplated by government.

According to him, the depot price alone has already rendered the proposed price cap unrealistic and unworkable, as marketers cannot be expected to sell below their cost price.

Godwin argued that with petrol selling at 1,370 naira per litre at the depots, the final pump price would inevitably be higher when transportation, logistics and profit margins are added.

He said this situation clearly shows that government is not being sincere in its handling of petrol pricing and is not adequately protecting consumers in the energy sector.

The union secretary also questioned the basis for the proposed price cap, asking how government arrived at the 1,350-naira figure when market realities point to a higher cost.

He maintained that government cannot claim to have deregulated the sector while at the same time trying to control prices through the backdoor, describing such action as policy inconsistency.

NUPENG warned that such inconsistent policies could lead to confusion, scarcity and exploitation of Nigerians by middlemen and other actors in the petroleum value chain.

The union said Nigerians are already suffering from the high price of petrol, which has led to increased transportation costs, high prices of goods and services and general hardship across the country.

Comrade Godwin stressed that any policy on petrol pricing should be transparent, realistic and aimed at protecting the interest of the masses, rather than creating further hardship.

He called on the Federal Government to come clean on the true state of deregulation and to engage stakeholders, including NUPENG, marketers and other unions, in finding a sustainable solution to the petrol pricing crisis.

The NUPENG secretary also urged government to address the underlying factors affecting petrol prices, such as exchange rate, cost of importation and lack of functional local refineries.

According to him, until these fundamental issues are addressed, Nigerians will continue to bear the brunt of high petrol prices, regardless of any price cap imposed by government.

He noted that the expectation of Nigerians was that deregulation, coupled with local refining, would lead to lower and more stable petrol prices, but the reverse has been the case so far.

Godwin said the union is concerned that the current approach of government does not reflect a genuine commitment to deregulation and does not protect workers and ordinary Nigerians who depend on petrol for their daily activities.

He added that NUPENG, as a key stakeholder in the oil and gas industry, will continue to speak out against policies that it believes are not in the best interest of Nigerians and its members.

The union also called on petroleum marketers to be considerate and to avoid arbitrary price increases that would further worsen the plight of Nigerians, while insisting on market-driven pricing.

Meanwhile, NUPENG reiterated its call for the Federal Government to urgently fix the country’s refineries and encourage more local refining to reduce dependence on imported petroleum products.

The union said that local refining remains the most sustainable solution to the recurring petrol price crisis and would help to stabilise prices, create jobs and boost the economy.

It also urged government to provide a clear, consistent and transparent framework for the downstream sector that would promote competition, attract investment and ensure affordable energy for Nigerians.

NUPENG maintained that Nigerians deserve to benefit from the nation’s oil wealth through affordable and available petroleum products, and that government has a responsibility to ensure this happens through sound policies.