BREAKING: Fuel Subsidy is Back?

BREAKING: Fuel Subsidy is Back?—The Federal Government has revealed that fuel subsidy which President Bola Tinubu removed on May 29, is back. FG acknowledged that it is currently providing subsidies for petrol nine months after Tinubu declared an end to the policy.

 

Mrs Olu Verheijen, the President Special Adviser on Energy, disclosed the development in Abuja, the nation’s capital, during a press briefing on Thursday.

The International Monetary Fund (IMF) had previously asserted that the federal government had resumed subsidizing fuel payments to petrol marketers, prompting Nigerians to call for transparency in the matter.

In response, Verheijen explained that the government is committed to mitigating the impact of the ongoing economic challenges faced by citizens. She stated that such interventions are standard practice globally when economic conditions become difficult.

She said; “The subsidy was removed on May 29. However, the government has the prerogative to maintain price stability to address social unrest. They reserve the right to intervene. “If the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government reserves the right to intervene intermittently and that, does not negate the fact that subsidy has been removed. “Fuel and electricity subsidies are costly, do not reach those that most need government support and should be phased out completely.

“So, if prices are moving, they reserve the right to intervene. It started in the US during COVID. There was a lot of expansionist moves but also subsidies. “All governments deserve that right. And so if for whatever reason the administration has reviewed that it is not the right time to have prices continue to fluctuate given the level of hardship in the country, given inflation, the government has the right to intervene intermittently.”