BREAKING: FG Gives Update On Fuel Subsidy Savings Since May 29th, 2023

FG has given an update on fuel subsidy savings since May 29th, 2023.

 

NewsOnline Nigeria reports that the Minister of Budget and National Planning, Abubakar Bagudu has explained that Nigerian National Petroleum Company Limited, NNPCL, is using fuel subsidy savings to sustain the product’s current pump price.

 

This Nigeria news platform understands that the minister made this known on Channels Television on Saturday, noting that Nigeria’s 2024 budget did not have an arrangement for fuel subsidy.

 

ALSO: Petroleum Marketers Accuse NNPC, DAPPMA Of Causing Petrol Scarcity

 

When asked about the amount saved from fuel subsidy since its removal in June 2024, he explained that NNPCL’s contribution has been affected because fuel import outweighed the pump price sold to Nigerians.

 

“That is the issue. If NNPCL is supposed to contribute the most it cannot contribute because I have to use the money to import fuel. NNPCL is obligated to provide energy security. Consequently what they are to provide is affected,” he said.

 

This comes amid uncertainties surrounding the government’s fuel subsidy payment despite its removal in June 2023, which led to the increase in the product pump price to above N600 per liter from N238.

 

NewsOnline Nigeria reports that one of the demands of the ongoing hunger protests, tagged #EndBadGovernance is the return of fuel subsidy.

 

The protest, which entered Day 3 on Saturday, is expected to last for 10 days.

 

Speaking on the protesters’ demand, the minister said the government is listening to Nigerians and making reforms in line with the yearning of the people.

 

When asked if NNPCL had remitted funds to the Federal Government, he said, “I am not aware. Not necessarily, the Accountant-General should know. I will be surprised if they have done so.

 

“Let’s face it, you told somebody to import fuel and he says the cost of import is higher than the cost of the product being sold.

 

“We have the NNPCL, the Petroleum Industry Act makes its private liability company and at the same time mandated it with energy security. So only NNPCL can say this is the price fuel is arriving in Nigeria.

 

“And if it is selling below that price, then obviously it is an NNPCL issue. It means it is NNPCL that is taking the loss. We don’t have the provision for fuel subsidy. That is not to say that NNPCL is not suffering a loss as a result of the difference between the landing cost and what it is being sold.

 

“President Tinubu is listening to Nigerians so that we do things differently.”

 

Recall that the Major Energy Marketers Association of Nigeria announced that the landing cost of fuel stood at N1,170 per liter. Meanwhile, depending on the location, fuel is between N617 to N850 per liter.