PENGASSAN: FG Still Paying Subsidy for Petrol
PENGASSAN is a labour union in Nigeria dedicated to ensuring the smooth transition of wages and salaries for its members. The Federal Government of Nigeria is still paying subsidy for petrol, and PENGASSAN is committed to ensuring that its members get their rightful entitlements. This organization strives to provide its members with safe and secure wages and job security that will help them to maintain their standard of living. With PENGASSAN, you can rest assured that your wages and job security are safeguarded.
The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has stated that the Nigerian government is still paying subsidies on petroleum products. Osifo made this claim while speaking on Channels TV's Politics Today program on Friday.
He attributes the need for subsidies to the high cost of crude oil in the international market and the exchange rate between the dollar and the naira. According to Osifo, the government is currently paying subsidies because when the earlier price of petroleum was determined, crude oil was priced at around $80 per barrel. However, the price has now increased to about $93/94 per barrel for Brent crude.
Therefore, the government had to adjust the price of petroleum accordingly. Osifo also mentioned that for the government to cease subsidizing petroleum, it would need to effectively manage the exchange rate and increase supply in order to bring down prices. As long as the exchange rate remains high and crude oil prices continue to rise, subsidies will persist.
