The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has contradicted President Bola Tinubu's statement that the subsidy era for petroleum is over, asserting that the Federal Government is still paying subsidy. Osifo, who also serves as the President of the Trade Union Congress (TUC), cited the international crude oil market's high prices and the unfavorable Dollar to Naira exchange rate as the reasons for the continued subsidy.
During an interview on Channels Television, Osifo explained that the government is indeed subsidizing petroleum because the international crude oil price has risen from around $80 per barrel to approximately $93-$94 per barrel for Brent crude since the earlier price determination.
He emphasized that as long as these factors persist, subsidy remains a necessity.
Osifo highlighted the key to ending petroleum subsidy: managing the exchange rate effectively and ensuring a stable supply to reduce exchange rate fluctuations. Until these conditions are met, he stated, subsidy will persist due to the unfavorable economic factors affecting the petroleum price.
