Presidency Speaks on Petrol Price Increase, Subsidy Payment after Dangote Fuel
- The Presidency has clarified the position of the government in the recently increased petrol prices nationwide
- The special adviser to President Tinubu on Information and Strategy, Bayo Onanuga, said the president never lied to Nigerians about subsidy payments
- Onanuga said that NNPC has continued to absorb the cost of petrol imports, leading to the firm facing financial strains
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
On Tuesday, September 3, 2024, the presidency disclosed that President Bola Tinubu’s government has been sincere about its policies.
An aide to the president on Information and Strategy, Bayo Onanuga, stated this On Tuesday, September 3, 2024, while clarifying the recent increase in the pump price of PMS across the country.
Source: Getty Images
Subsidy payment is not in the budget
Onanuga disclosed via his X handle that media reports accusing the government of misleading Nigerians about petrol subsidy payments were untrue, claiming that the government had been faithful to its policy of deregulating the downstream sector.
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The special adviser to Tinubu noted that on May 29, 2023, the President announced that the fuel subsidy was gone, stating that the statement stands true.
He said that subsidy payments were never in the supplementary budget of 2023, adding that the Nigerian National Petroleum Company Limited (NNPC) was praised for absorbing the rising costs of petrol to protect Nigerians from the effect of subsidy removal.
He admitted NNPC’s financial challenges in continuing to supply petrol to the Nigerian people at affordable costs.
FG hopes Dangote Refinery will rescue Nigerians
According to Onanuga, the government is hopeful that the Dangote and other local refineries would benefit Nigerians and the economy, create jobs and reduce FX demands for petroleum product imports.
The New Telegraph reported that Onanuga disclosed that what happened was the NNPC's disposition to absorb the rising costs of petrol at the pumps and shield Nigerians from the effects of subsidy removal.
He said:
“The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent.
According to Onanuga’s statement, the situation impacted the government’s ability to function as NNPC failed to pay the money that should have gone to the government into the Federation Account.
NNPC’s petrol price increases rattle Nigerians
Legit.ng earlier reported that petrol stations owned by the NNPC increased their pump prices from N580 per litre to N855, with Nigerians speculating that the national oil firm has hiked the commodity’s price.
Other petrol stations across the country also adjusted prices to N897 per litre. NNPC has since denied any price increases.
The development led to the Nigerian Labour Union (NLC) and organised labour saying that the government deceived them during the negotiations for the increase in the minimum wage.
Other Nigerians said the increase in pump prices of petrol was to frustrate Nigerians after Dangote Refinery released its petrol into the market on the same day the price increase occurred.
NNPC lifts Dangote petrol, sells at new cost
Legit.ng earlier reported that as of Tuesday, September 3, 2024, the NNPC tankers have begun lifting petrol from Dangote’s mega refinery in Lekki.
The refinery’s petrol production offers a new and potentially more efficient supply route for Nigeria’s petrol needs.
Aliko Dangote, Chairman of Dangote Industries Limited, said the refinery can satisfy Nigeria's and Sub-Saharan Africa's petrol demand.
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Source: Legit.ng
