Festus Osifo, national president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), claims that the Federal Government continues to provide petroleum subsidies despite President Bola Tinubu’s assertion that the era of petroleum subsidies is over.
The cost of crude oil on the global market and the exchange rate between the US dollar and the Nigerian naira, according to Osifo, who is also president of the Trade Union Congress (TUC), prevent the federal government from ceasing to subsidize the product.
During a Channels Television interview, he stated;.
“Today, they [the government] are paying subsidies.
Since crude was selling for around $80 per barrel on the international market when the earlier price was set, there is actually subsidy today.
However, the price of a barrel of Brent crude has increased to around $93/94 today. In light of the fact that it has changed, the price of petroleum also had to change. “.
Osifo provided the following advice regarding how the government can stop subsidizing petroleum.
If you are able to effectively manage your exchange rate, add supply, and lower the exchange rate, the only time the price will not change is in those circumstances.
Thus, we won’t be paying subsidy if the exchange rate declines today.
However, due to the value of the exchange rate and the cost of crude oil on the global market, we have implemented subsidy.
“.
