The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Festus Osifo, has claimed that the Federal Government was still paying subsidy on petroleum products.
Osifo, who is also the president of the Trade Union Congress, TUC, stated this while speaking on Channels TV’s Politics Today on Friday.
He 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.
He 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.
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.”
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