According to a report on Ajapareporter.com, the President of the Trade Union Congress (TUC), Festus Osifo, has shed light on the Nigerian federal government’s strategy of applying a quasi-subsidy on fuel prices, revealing that special foreign exchange concessions are being granted to product importers….CONTINUE READING
Speaking during an interview on Channels Television, Osifo, who also serves as the head of the Petroleum and Natural Gas Senior Staff Association of Nigeria, unveiled the mechanisms behind the government’s approach to stabilizing fuel prices amidst currency fluctuations.
Osifo elucidated that the quasi-subsidy policy has effectively maintained the pump price of fuel within the range of N617 to N700, notwithstanding the turbulence in the foreign exchange market.
He emphasized the government’s responsibility to safeguard the welfare of its citizens, highlighting the necessity of intervention to prevent exorbitant price hikes in essential commodities.
“Government exists to take care of the welfare of the people.
“When the Naira was floated, it was devalued for us and then the currency started moving south. TUC was worried and engaged the government to bring some level of control. If we had allowed what was done to diesel to happen to Premium Motor Spirit, it would have been sold for over N1000 per litre,” Osifo stated.
He further elaborated on the dialogue between labor representatives and sector stakeholders, advocating for special concessions to fuel importers to stabilize prices.
Osifo attributed the current price consistency to this intervention, dubbing it “quasi-deregulation.”
TUC President Reveals Nigerian Government’s Quasi-Subsidy Approach to Fuel Pricing
ByAllNigeria
May 1, 2024