Categories: Top Stories

PENGASSAN Confirms Return of Fuel Subsidy Under Tinubu Government

Advertisement
Advertisement

PENGASSAN has confirmed the return of fuel subsidy under the Tinubu Government.

 

NewsOnline Nigeria reports that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed the return of fuel subsidy under President Bola Tinubu.

 

This Nigeria news platform recalls that President Bola Tinubu had announced the removal of fuel subsidy on his first day in office, leading to an increase in fuel price from N197 to between N480 and N570, the pump price was subsequently reviewed upward to N620.

 

ALSO: CBN Guidelines To Lodge Complaints Against Any Financial Institution

 

However, there were reports that the price would go up as a result of fluctuation in the global oil market.

 

There were reports that the federal government intervened to prevent a further rise in pump price, but the government denied this.

Subsidy back as FG pays N169.4bn in August

 

However, NewsOnline Nigeria subsequently found documents that showed that despite the numerous assurances by Tinubu that the subsidy was gone, the federal government paid N169.4 billion as subsidy in August to keep the pump price at N620 per litre.

 

A document by the Federal Account Allocation Committee (FAAC), sighted by our reporter, showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited. NNPC Limited used $220m (N169.4 billion at N770/$) out of the $275m to pay for the PMS subsidy. Then NNPC held back $55m, illegally.

The government neither confirmed nor denied the story.

 

Speaking on Channels Television’s Politics Today, 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.

 

“They [government] are paying subsidy today. In reality today, there is a 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 said.

 

He said before the government can stop subsidizing 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,” the PENGASSAN boss said.

Advertisement
NewsOnline Nigeria

Recent Posts

  • Top Stories

Presidency, Stakeholders To Attend the Unveiling Ceremony of the 21st Century Skills Roadmap

Leading stakeholders in Nigeria’s skills development and engagement space are set to attend the Unveiling…

2 hours ago
  • Crime Watch

Watch Embattled Yahaya Bello Being Interrogated By EFCC Investigators (VIDEO)

Watch the video of the embattled Yahaya Bello being interrogated by EFCC Investigators below.  …

3 hours ago
  • Economy And Business

BREAKING: President Tinubu Orders NNPCL To Reactivate Warri, Kaduna Plants

President Tinubu has ordered NNPCL to reactivate the Warri and Kaduna plants.   NewsOnline Nigeria…

3 hours ago
  • Exchange Rates

BREAKING: President Tinubu Rejects Son, Seyi’s Lagos Governorship Ambition

President Tinubu has reportedly rejected his son, Seyi's rumoured Lagos Governorship Ambition.   NewsOnline Nigeria…

3 hours ago
  • Crime Watch

BREAKING: EFCC Confirms Arrest Of Fleeing Former Governor Yahaya Bello (VIDEO)

EFCC has confirmed the arrest of fleeing Former Governor Yahaya Bello.   NewsOnline Nigeria reports…

3 hours ago
  • 2027 Election

BREAKING: Atiku, Peter Obi, El-Rufai Reportedly Move To Form New Political Party

Atiku, Peter Obi and El-Rufai have reportedly moved to form a new political party ahead…

10 hours ago