TUC states how petrol price can return to N350/litre

• Trade Union Congress advised that the Nigerian National Petroleum Company Limited adopt a preferential foreign exchange rate
• It stated that this would help to slash the fuel price to about N600/litre from their present pump price of over N900/litre
• Even with the recent adjustment of the petrol pump, the head of TUC said that the NNPCL is still bearing the subsidy on petrol

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

The Nigerian Customs Service (NCS) and the Central Bank of Nigeria (CBN) have been urged by the Trade Union Congress (TUC) to provide the Nigerian National Petroleum Company Limited (NNPCL) a preferential foreign exchange rate.

The head of the TUC stated that the NNPCL is still responsible for the subsidy. Photo credit: Maskot
Source: Getty Images

The TUC claimed that if the NNPCL was given a unique FX rate of roughly N1000/$ rather than the official rate of N1,600/$, the state-run company's cost of importing petrol would drop, and depending on the region, fuel prices would decrease to about N600 from their present pump price of over N900.

TUC President Festus Osifo said as much on Monday's Politics Today show on Channels Television.

Osifo, who is also the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), asserted that the depreciation of the currency by the current government is the true issue, not President Bola Tinubu's decision to remove subsidies in May 2023.

“The ultimate elephant in the room is devaluation,” Osifo stated, explaining that petrol would be selling at around N350 if the naira was not devaluated simultaneously with the removal of petrol subsidy last year, declining from around N700/$1 to over N1,600/$1."

The head of the TUC stated that even with the recent increase in the price of perol at the pump from about N600 to over N900, the NNPCL is still responsible for the subsidy.

Osifo said,

“If you give a special rate to NNPC, you don’t need to pay for subsidy anymore. The same special rate that was given to Dangote (Refinery) to sell, a special rate was given.“Before now, we have had our Customs giving special rates. So, that special rate should be given in that sector.“With the sale of crude to Dangote in naira, and you decide that that crude you are selling to Dangote in naira, the exchange rate will be N1,000 to a dollar. If you do that, all marketers can go to Dangote and sell at a reduced rate compared to what is practicable today.“It is about the exchange rate and that is what we have propounded over time.”

Presidency speaks on petrol price increase

Legit.ng reported that 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.

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.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng