FG Still Paying Subsidy For Petrol –PENGASSAN

The National President of Nigeria’s Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and also the president of the Trade Union Congress (TUC), has asserted that the Federal Government continues to provide subsidies for petroleum products.

Osifo made this statement during an appearance on Channels TV’s Politics Today, citing the high cost of crude oil on the international market and the exchange rate between the dollar and the naira as reasons for this ongoing subsidy.

Osifo said, “They [government] are paying subsidy today. In reality today, there is subsidy because as of when the earlier price was determined, the price of crude in the international market was somewhere around $80 for a barrel.

“But today, it has moved to about $93/94 per barrel for Brent crude. So, because it has moved, then the price [of petroleum] also needed to move,” he added.

Osifo noted that for the government to stop subsidising petroleum, “The only reason the price will not move is when you are able to manage your exchange rate effectively and you are able to pump in supply and bring down the exchange rate.

“So, if the exchange rate comes down today, we will not be paying subsidy. But with the exchange rate value and the price of crude oil in the international market, we have introduced subsidy.”