By Kunle Olasanmi

Labour last night suspended the nationwide fuel price strike following an agreement with the Federal Government on some of its demands.

The agreement was preceded by a letter yesterday from President Umaru Yar’Adua to the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) leaders.

The President had written the unions, asking for the suspension of the strike which has paralysed economic and social activities in the country.

In the letter, Yar’Adua urged Labour to accept the new petrol price of N70 per litre and promised that there would be no further increase in price for one year.
In a communique signed by the NLC president, Comrade Abdulwaheed Omar, president of TUC, Mr Peter Esele and the Secretary to the Federal Government, Ambassador Babagana Kingibe, the strike which started last Wednesday was suspended.

Based on agreement reached, the pump price per litre of fuel will remain N70 as earlier proposed by the government. The N10 increase in the price of kerosene and diesel was reversed.
It was agreed that there will be no review of the new price level of N70 for petrol for the next 12 months.

The increase in Value Added Tax (VAT) from five to ten per cent was revoked.
An expert committee to examine the pricing mechanism of petroleum products will be set up to make recommendations bearing in mind the strategic nature of the product and impact on their price level on the economy and the social life of Nigerians.

The Federal Government will also establish an expert committee to examine the recent privatisation and concession especially regarding the sale of 51 per cent equity in the refineries and the proposal for the power sector.

Yar’Adua over the weekend broke the earlier deadlock in negotiation with his letter to Labour, which was already considering options for sustaining the strike. The strike had paralised economic and social activities nationwide.

In the spirit of the strategic partnership between government and labour contained in the President’s letter of June 23 to the NLC and TUC, the union leaders agreed on the need for a mechanism for structured, pro-active and routine interaction between government and the organised labour.
Before the government, labour meeting last night, the Central Working Committee (CWC) of NLC had met and deliberated on the President’s letter.

The CWC was said to have considered it a "privilege and honour" that the President wrote the NLC leadership.
"And as a mark of honour to the President, it was decided that we should call off the strike," a source said.

The President had before the strike began last Tuesday reduced petrol price from N75 to N70 per litre and suspended the 100 per cent increase in value added tax (VAT).
Former President Olusegun Obasanjo barely two days of his exit from office on May 27 increased petrol price from N65 to N70 per litre and raised VAT from 5 per cent to 10 per cent.

Yar’Adua’s reduction of petrol price did not satisfy Labour which insisted on a return to the old price.
To resolve the logjam, government and Labour began a series of meetings. The meetings throughout last week achieved nothing.

During one of the meetings, the government issued a statement on Wednesday night in which it accused Labour of pandering to political whims by embarking on the strike which paralysed the nation between Tuesday and Friday.

In the statement signed by the Secretary to the Government of the Federation (SGF), Ambassador Babagana Kingibe, government claimed that it had bent backwards to appease Labour.

It lamented that despite its efforts Labour was not prepared to see reason with it.
The statement said Labour was dancing to the tune of the Joint Action Forum (JAF) and warned Labour against exceeding the limits of legality in going on strike.

It said Labour’s strike was in flagrant disregard of the order of a Federal High Court which prohibits any public procession without police permit.

Responding, Labour castigated government for threatening it and vowed to continue with the strike until a reversal of petrol price to N65.

In another statement issued at the end of their parley in the early hours of Friday, Kingibe warned Labour against testing government’s will.

The SGF said government would not shy away from using force if labour continued to debar law-abiding citizens from going about their lawful duties.