Nigeria Labour Congress has rejected government’s plan to fully deregulate petrol pricing.
The government has said it is no longer continue subsidizing fuel for it’s citizens.
The Nigerian National Petroleum Corporation (NNPC) said it stopped bearing the N120 billion monthly subsidy on the cost of petrol consumption by Nigerians.
This was revealed by the Group Managing Director (GMD) of NNPC Mallam Mele Kyari.
Mallam Mele spoke during the ministerial briefing at the State House in Abuja on Thursday.
Others in attendance were the Minister of State for Petroleum Resources Timipre Sylva and Executive Secretary of the Petroleum Technology Development Fund (PTDF) Dr Bello Aliyu Gusau.
Sylva on March 16, said in Ibadan, the Oyo State capital that petrol pricing would be fully deregulated before end of the year.
His words: “Deregulation of PMS (petrol) has continued to elude us. We expect that this year, we will be able to achieve that,” he had said.
The Lagos Chamber of Commerce and Industry (LCCI) backed the decision to terminate the subsidy but said it should be guided to prevent a backlash.
Kyari explained that the NNPC absorbs the cost differential, which is recorded in its books.
He said while the actual cost of importation and handling charges is N234 per litre, the product sells at N162 per litre.
He said the burden had become too heavy for the NNPC to bear.
According to him, after talks with the Organised Labour, the market forces would determine prices of petroleum products.