Tinubu Considering ‘Temporary Subsidy’ On Petrol
As the cost of crude oil and foreign exchange keeps rising, President Bola Tinubu is weighing the option of a “temporary subsidy” on petrol, according to sources in the presidency.
The proposal is “firmly on the table”, but no final decision has been made yet, TheCable learnt. The move is aimed at easing the economic hardship faced by Nigerians since the petrol subsidy was removed in May 2023.
The removal of subsidy has led to frequent increases in the pump price of petrol, which is currently over N600 per litre. This has triggered inflation and public discontent, with labour unions threatening to go on strike if the price goes up again.
The Kenyan government recently restored fuel subsidies to reduce the prices of petrol, kerosene, and diesel, after months of violent protests over the high cost of living.
A presidency official told TheCable that the actual consumption of petrol in the country is now known, since the subsidy was removed when Tinubu took office. This means that the subsidy expenditure “can now be controlled”.
The Nigerian National Petroleum Company (NNPC) Limited said on Monday that it has no plans to increase the pump price of petrol, despite the rise in crude oil prices, landing cost, and fall in the value of the naira.
This could be a way for Tinubu to maintain the current prices, but private importers have not announced any adjustments yet.
However, rumours of another hike in petrol price have caused anxiety among Nigerians, leading to panic buying on Tuesday morning.
Tinubu, who became Nigeria’s elected president in May 2023 amid legitimacy issues, introduced several policies to revive the economy shortly after his inauguration.
But the economy is still struggling, as the naira continues to depreciate against the dollar. The Central Bank of Nigeria (CBN) said on Monday that it will implement new measures to stabilise the exchange rate.
