The Nigerian Organized Labour says it is opposed to the existing Import-Parity Model of Petrol Price Mechanism. It has, therefore, suggested the adoption of a production cost pricing method where the price of petrol will be based on the cost of domestic crude oil production and refining in the domestic market.
Giving reason for the advocacy, the Labour movement claimed the existing import-parity model has bled Nigeria of humungous Forex and is a major singular source of Nigeria’s economic haemorrhage and instability, adding that the import-parity pricing model is a ploy to service the neo-liberal and neo-colonial wishes of those who want to keep Nigeria economically subservient.
The Labour movement’s position was contained in a joint statement by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to mark this year’s May Day celebration
NLC and TUC, which have been in negotiations with the federal government over fuel price and electricity tariff, said that each country chose the model that matched with its developmental level, unique resources, development strategies and nature of domestic energy markets.
Labour noted that Nigeria has already lost huge sums of money to phoney contractors and their collaborators in government, who had a huge meal importing refined products into Nigeria, feasting on the so-called subsidy and defaulted on their commitments for effective turn around maintenance of our refineries.
Labour urged Nigeria to moderate the production-cost-pricing model to fit into its developmental and market agglomeration goals, adding that it does not just make sense that we are the only Organisation of the Petroleum Exporting Countries (OPEC) country that cannot refine her crude oil.
The production cost pricing model allows the government to manage the national petrol market in the interest of sustainable economic development. What is more, it would encourage the industrialisation of our country and would break Nigeria from its colonial past as a mere source of raw materials and a net importer of manufactured goods.