The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed the return of fuel subsidy under President Bola Tinubu.
Festus Osifo, National President of PENGASSAN, said due to the cost of crude oil in the international market and the exchange rate, the government still pays subsidies on petrol.
Responding to the question of whether the government is still subsidising petrol since the removal of the fuel subsidy, Osifo said, “We have to be honest to Nigerians. As of today, I can tell you that if you look at the crude oil price, there is what they call Platts; so, if you google it, you will see the Platts index, and if you check the Platts index, that will give you the ex-depot price from Rotterdam.“So, if you look at it and you convert it using our current exchange rate you know that the landing cost in Nigeria today ought to be more than what we are dispensing at the pump,” he said. He said what that means is the additional cost is being catered for by the government.“But our cry is this, we should manage our FX more effectively compared to the way we are managing it today. If the true value of our exchange FX is around N600 to a dollar, if that is the true value, the government should find a way to manage it. There is no need to pay subsidies.
