THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says a litre of petrol should sell for between N360 and N400 after the subsidy regime.
PENGASSAN president, Festus Osifo, made this known to newsmen yesterday on the sideline of the association’s National Executive Council meeting in Abuja.
Osifo said, “Today, the sole importer of PMS (petrol) into Nigeria is the NNPC. The NNPC is using an exchange rate of the CBN, which gives about N400 to N450 depending on the day and depending on the window that you are looking at. So, if you compute that into the model today, PMS should be selling for a region of about N360 to N400.”
A litre of petrol is currently sold at N184 in some parts of the country, but slightly higher than that in other regions, even as fuel scarcity and long queues gradually subside in most cities.
The PENGASSAN chief, however, said the association had compelled all its organs nationwide to make fuel available for Nigerians, as he threatened to withdraw the licences of any member found hoarding petrol.
He said functional local refineries would not only make fuel affordable but provide jobs for Nigerians. He advised that the money removed from fuel subsidy be used to end the perennial strike by the Academic Staff Union of Universities (ASUU).
He said, “While maintaining our support for the full deregulation of the sector and the significant milestone achieved in this regard, we counsel that efforts be made to increase the pace of the current rehabilitation exercise of refineries and get them back on track in due time.”
Osifo said the currency swap, as well as sporadic fuel scarcity across the country must be addressed by the incoming administration, while palliatives must be made available to Nigerians to cushion the impact of the removal of fuel subsidy.
The Minister of Finance, Zainab Ahmed, had already informed of government’s plan to remove fuel subsidy before the end of the current administration.
Accordingly, the Central Bank of Nigeria (CBN) governor, Godwin Emefiele, at the last Monetary Policy Committee meeting held on March 21, 2023, disclosed that the government was already preparing grounds for subsidy removal.
“Upward risks and price adjustments in a build-up to petroleum subsidy removal, rising food prices are key considerations for raising monetary rate to 18 per cent,” Emefiele said.
Also, the Minister of Labour and Employment said yesterday in Abuja that the incoming administration would bear the burden of providing palliatives for Nigerians when subsidy is eventually removed.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.