Tinubu lied on petrol subsidy removal – PENGASSAN
National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr. Festus Osifo says President Bola Tinubu lied in his May 29 inauguration speech when he had declared that ‘petrol subsidy is gone,’ as he insisted that the Federal Government is still paying subsidy on imported petroleum products.
The May 29 scrapping of subsidy on imported petrol (premium motor spirit) has set off a chain of price hikes across all commodities in the Nigerian market.
However, speaking as guest on a Channels Television programme, Friday, Mr Osifo, who also doubles as the President of the Trade Union Congress (TUC), said due to the cost of crude oil in the international market and the dollar to naira rate, the government still pays subsidy for the product.
“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,” the PENGASSAN boss said.
Continuing, Osifo said: “For the government to stop subsidising petroleum, two things must happen.
“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.”
