The Federal Government has firmly denied recent reports suggesting the restoration of the subsidy for premium motor spirit (PMS), commonly known as petrol.
Some oil marketers and a faction of organized labor have alleged that the government reversed its earlier decision, claiming that the removal of the subsidy has led to unstable fuel pump prices, despite fluctuations.
However, the government has dismissed these claims, maintaining its stance on the subsidy removal.
In a recent interview with Channels TV, Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), revealed that despite President Bola Tinubu’s declaration that the subsidy era is over, the Federal Government continues to pay subsidies on petroleum.
Osifo explained that this ongoing subsidy is due to the high cost of crude oil in the international market and the fluctuating Dollar to Naira exchange rate.
Addressing reporters’ queries at the Presidential Villa in Abuja following a meeting with President Tinubu on October 9, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), affirmed that there is currently no fuel subsidy in place.
He said, “I told you there’s no subsidy whatsoever, we are recovering our full cost from the products that we import. We sell to the market; we understand why the marketers are unable to import. We hope that they do this very quickly and these are some of the interventions the government is doing. There is no subsidy.”