The Federal Government is contemplating an intervention to alleviate the adverse impact of the removal of fuel subsidies on Nigerians, as the Kenyan government has reinstated the petrol subsidy programme.
Sources close to the matter told The PUNCH in confidence that President Tinubu had promised to intervene if the need be.
The sources said crude oil prices had continued to rise in the international market, and the ex-depot price of petrol had equally risen to around N600 per litre.
“We must thank President Tinubu for removing fuel subsidies because the country would have been in big trouble by now.
“In view of the rising prices of crude oil, we can now see that the quantity of petrol they said we used to consume had dropped. At the same time, we can see that price of crude oil is increasing, meaning that Nigeria would have more money in addition to the money the country has saved from subsidy removal. Then, since we have more money in the country, we have to pay as petrol prices keep rising.
“Ex-depot price is now between N590 and N600 per litre depending on the depot, and it will either go up or come down, depending on crude price and exchange rate,” one of the sources told The PUNCH.
According to the source, the President has said that there would be interventions if need be, “but we don’t know what kind of intervention it would be.”
“We believe they are watching as the situation arises and would know when to intervene,” the source assured.
The PUNCH findings come on the heels of a fresh report of the return of petrol subsidies in Kenya, barely a year after President William Ruto assumed office.
According to a report by a U.K. news medium, The Standard, quoting sources privy to discussions between the Energy and Petroleum Regulatory Authority, oil marketers and the Ministry of Energy, President Ruto had returned subsidies for just two months, August and September.
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilise pump prices for the August to September 2023 price cycle,” said Epra in a statement.
“Oil marketing companies will be compensated by the Petroleum Development Fund.”
Oil marketers were said to have been against the subsidy as it had generated over Sh45.8bn in unpaid debts to the sector.
The debt, which was carried over from the last administration, has seen the government float two bonds to meet its obligations with taxpayers set to incur an additional cost of 14.22 per cent in interest payments.
