PENGASSAN Raises Alarm Over High Cost Of Food, Cooking Gas

A file photo of a woman at a market.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised an alarm over the increasing cost of food and cooking gas in the country.

In a statement jointly signed by its President – Festus Osifo, and General Secretary – Lumumba Okugbawa, the union lamented that the nation was degenerating into a land plagued with hunger.

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The people’s purchasing power, according to its, has seriously worsened as the prices of food in the market have continued to rise in the last three years.

It blamed the situation on the devaluation of the naira against major currencies, displacement of farmers by bandits and terrorists, and inconsistent policies of the government, among others.

According to PENGASSAN, farmers in Benue, Plateau, Katsina, Nasarawa, and Taraba States cannot readily access their farmlands due to security threats.

On the cost of Liquified Natural Gas (LPG), commonly referred to as cooking gas, it lamented that the price of refilling a 12.5kg-cylinder has risen by almost 100 per cent.

The union believes poor families are going through harrowing experiences in their struggle to cope, even as the price of kerosene has since surged despite the unavailability of the product

It also asked the government to encourage its workers rather than making it mandatory to take the COVID-19 vaccine, adding the deregulation of the downstream oil sector must be based on domestic refining and not import-dependent.

Read the statement dated November 30, 2021, below:

PENGASSAN ON THE STATE OF NATION

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) wishes to bring to the attention of the President of the Federal Republic of Nigeria, the President of the Senate, the Speaker of the House of Representatives, and other critical stakeholders to some of the burning issues in our national polity and the existential need for Government to put the interest of the citizens first in all its dealings.

We strongly advocate that Government must develop a strong mechanism in tracking how its macroeconomic policies, be it fiscal or monetary, affect the disposable income of individuals and households in the country.

The Association has noted and sadly so, that most of the recent macro-economic policies of the Government have further exacerbated the economic hardship faced by our members and Nigerians in general.

If this poverty induced policies are not urgently checked and correctional measures put in place, we could assure you that the little shred of hope that the citizens have in the country will fast erode and this could degenerate the already challenging security situation and grossly affect the level of governance.

Some of the prevailing issues that are affecting the general populace and require urgent attention are as follows:

  1. FORCED VACCINATION ON NIGERIANS

PENGASSAN have observed with dismay the recent directive accompanied with threats by the Presidential Steering Committee (PSC) that Civil Servants, specifically Federal Government Employees, would from December 1 st 2021, shall be required to present proof of vaccination or negative Polymerase Chain Reaction (PCR) tests, conducted within 72 hours to gain access to their offices in all locations in Nigeria and the Missions.

We consider this directive and threats as unbecoming, draconian and against the Constitution of the Federal Republic of Nigeria that the Government pledged to always uphold. The Association has earlier admonished providers of labour to sensitise and advocate to its employees on the advantages of taking COVID-19 vaccines and not to issue threats to the workforce.

We wish to request that the undemocratic and anti-masses directives, that infringes on the right of the citizens be stopped and withdrawn with immediate effect.

  1. HIGH COST OF FOOD

The Nation is fast degenerating into a land plagued with hunger as if famine has descended on our beloved Nation. The purchasing power of the already pauperised disposable income of the citizens has greatly degenerated as the cost of food in the market has gone up astronomically in the last three years.

Whereas the astronomically increase in the cost of food, wages are at best stagnant and in some cases reduced unilaterally and drastically. This could be attributable to several factors that are not limited to the gross devaluation of the Naira against major currencies, displacement of farmers by bandits and terrorists, inconsistent policies of Government, etc.

To further exacerbate the looming dangers caused by food insecurity, farmers in states such as Benue, Plateau, Katsina, Nasarawa, and Taraba cannot readily access their farmlands due to myriads of security challenges occasioned by incompetence and lack of patriotism.

It is necessary to secure the farmers and their farmlands as aggregate food production by the local farmers is the bedrock on which the systems of our food security rest.

  1. HIGH COST OF LPG

The Association wishes to further bring to the attention of Government the hyperinflation that has greeted Liquified Natural Gas (LPG), commonly referred to as cooking gas. It is disheartening to note that the price of refilling a 12.5kg cylinder of Liquefied Petroleum Gas (cooking gas) has risen by almost 100% percent over the past one year.

This is one singular product that is used by several households in the country. Currently, the cost of cooking gas has continued in steady climb from an average of 4,500 Naira at the beginning of 2021 to the current price of between 8,750 and 10,000 Naira for the popular 12.5kg cylinder.

We are worried that most middle to upper-class homes, especially in the urban areas, are feeling the pinch. The poorer families are going through harrowing experiences trying to cope, more so as the price of kerosene had long taken flight in addition to being scarce in many places. Despite Nigeria sitting on one of the largest gas reserves in the world, we still depend largely on imported gas. Up to 70 per cent of the gas we consume in the country is imported.

Some of the reasons attributable to this skyrocket increment is the devaluation of the Naira against major currencies and the introduction of a value-added tax of 7.5% on imported gas, an increase in the international price of gas, etc. We hereby call on the President to immediately abolish the VAT on gas importation, prevent further slide of the Naira, channel some of the exported gas to domestic use, and provide some form of verifiable palliatives for the lower-class citizens.

  1. DEREGULATION OF PMS

The history of deregulating the downstream oil sector through gradual or total subsidy removal has engendered intense debates between PENGASSAN, successive Governments, stakeholders, and experts in the oil and gas sector with each claiming that it will guarantee long term stability in product supply and price. And that it will lead to an advance and well-developed economic transformation in the country.

PENGASSAN as an Association and a major stakeholder in the industry do not have issues with all the advantages, they claim that deregulations will usher into the economy because we understand the workings within the industry and therefore stand in a pole position on issues that border it. While maintaining our support for the full deregulation of the sector, we however reiterate that we will only support a deregulation exercise based on domestic refining and not import-dependent.

Therefore, effort should be made to increase the pace of the current Refinery rehabilitation and support the continuous strengthening of the Naira.

Conclusively, we wish to admonish the Government at all levels to quickly come together and find urgent solutions in the short and long term to the myriad of issues plaguing the Nation to reduce the difficulties faced by the citizens.

A stitch in time saves nine.

For: PETROLEUM AND NATURAL GAS SENIOR STAFF ASSOCIATION OF NIGERIA (PENGASSAN).

Comrade Lumumba .I. Okugbawa, MINM       President, PENGASSAN

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