Fuel is currently subject to a quasi-subsidy by the Nigerian federal government, as stated by Festus Osifo, President of the Trade Union Congress.
This information was revealed by Osifo, who also serves as the Nigerian Petroleum and Natural Gas Senior Staff Association, in an interview broadcast on Channels Television on Wednesday.
He mentioned that importers of products are receiving special foreign exchange concessions from the government.
Subsidy Removal: Federal Workers Asks Tinubu To Investigate Delay In Payment Of Wage Award
He claims that the quasi-subsidy is what kept the petrol pump price between N617 and N700 despite currency swings prior to the recent shortage of the commodity.
“Government exists to take care of the welfare of the people.
“When the Naira was floated, it was devalued for us and then the currency started moving south. TUC was worried and engaged the government to bring some level of control. If we had allowed what was done to diesel to happen to Premium Motor Spirit, it would have been sold for over N1000 per litre.
“We had a conversation with the managers of the sector. We said the issue of PMS price should not escalate beyond where it was then. We propose that the government give fuel importers a special rate for product importation. What is happening today is that there is a special concession for fuel importers. Because that is fixed, you see the price of PMS where it is today. If we had allowed that float with the rate of Naira at the FX market, PMS would be selling for over N1200 per litre. Due to the intervention we made, they managed it from the backend. You can call it Quasi-deregulation”, he said.
Fuel Subsidy: FG, Labour Union Proposed Meeting Postponed
Remember that the Nigerian government had declared in June that the fuel subsidy would be removed, resulting in a price increase for the product from N238 to N616 per litre.
The government had promised to remove fuel subsidies and put an end to shortages.
Meanwhile, the resumption of fuel scarcity in recent days has made Nigerians’ already dire situation worse.
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.