The Federal Government and the organised labour will reconvene on February 22 for the consideration of the reports of the bipartite technical committees on fuel price and electricity tariff.
The Minister of Labour and Employment, Senator Chris Ngige, disclosed this Monday night while briefing journalists after a bipartite meeting between the FG and the organised labour at the Banquet Hall of the Presidential Villa, Abuja.
Ngige said they received and adopted the report of the Technical Committee on Premium Motor Spirit Pricing Framework, while that of the Electricity Tariff Committee was expected in a week’s time.
He explained that the organised labour requested for some time to subject the report on PMS pricing to their organs for further investigation.
“It is a technical report, so they needed further investigation of the report by their own technical research team. The Technical Committee on electricity tariff has not finished. We expect the report in a week’s time. So, cogently, we are reconvening on 22nd of this month to take both reports,” Ngige noted.
The report of the Technical Committee on PMS Pricing was presented at the meeting by the Chairman of the Committee, Onochie Anyaoku, a former Executive Director, Refineries Operations and Petrol Pricing in the Nigerian National Petroleum Corporation.
Anyaoku explained that the committee at its meeting on December 16 developed guiding principles and a work schedule, distinct from the primary function of the Petroleum Products Pricing Regulatory Agency to develop a transparent methodology and a template that will serve as the guide on realistic PMS pump price and benchmark all pricing elements of the PMS pricing template with neighbouring countries.
He stated, “Based on extensive review of the pricing framework and in line with the terms of reference of the committee, the following recommendations were proposed and adopted:
“PPPRA to convene periodic meetings with PPMC and other importers to ensure actual cost of supply reflective determination as an interim solution.
“NLC, TUC, PENGASSON and NUPENG to witness the transparent determination at the periodic meeting.
“PPPRA frequently monitor data of Rotterdam supply chain values. This should continue to form the basis of price determination until the West African basket is liquid and transparent enough to warrant its adoption in the pricing template.
“All importers including NNPC to adopt the same forex window used by PPPRA to ensure alignment and accurate pricing. PPPRA board to adopt weighted average as the basis of determination.
“Government to enforce immediate collection of NPA and NIMASA charges in naira to reduce pressure on forex demand and pump price hike.
“To develop adequate communication strategy on the necessity of deregulation and the benefit to the people, to create public awareness and gain acceptability of deregulation, which will reduce the pressure on labour to react to fuel increase.”
“Deregulation is a huge change in national policy but highly desirable in this stage of our national development policy, for which its implementation requires trust building steps and commitment to visible frugal spending by government.”
– Punch