The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that the Federal Government is still paying subsidy on petroleum.
The President of the association, Festus Osifo, made this known on a Channels TV programme: “Politics Today.”
Osifo, who is also the president of the Trade Union Congress (TUC), equally adduced reasons for the payment of subsidy by the Federal Government; months after President Bola Ahmed Tinubu declared it dead.
He told Channels Television Politics Today on Friday: “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.”
Osifo said for the government to stop subsidising 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 Eagle Online
