Festus Osifo, the National President of PENGASSAN, stated that the Federal Government of Nigeria is still paying subsidies on petroleum, despite President Bola Tinubu’s earlier declaration that the subsidy era had ended.
Osifo explained that this subsidy continues due to the rising cost of crude oil in the international market and the exchange rate between the dollar and the naira.
He pointed out that when the previous petroleum price was determined, international crude oil prices were around $80 per barrel, but they have since increased to approximately $93-94 per barrel for Brent crude.
Therefore, to align with these market changes, the price of petroleum also needed to adjust.
Osifo emphasized that for the government to stop subsidizing petroleum, two key factors must be addressed: effectively managing the exchange rate and ensuring a stable supply to bring down the exchange rate.
As long as these challenges persist, subsidies on petroleum will continue.
Peoplesmind