March 28, (THEWILL) – The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has thrown its weight behind the Federal Government’s plan to remove payment of subsidy on petroleum products.
The association confirmed its position while speaking with newsmen at its National Executive Council Meeting in Abuja.
THEWILL earlier reported that President Muhammadu Buhari has approved the removal of subsidy on Petrol.
When asked whether PENGASSAN supports subsidy removal in absence of operational local refineries, President of the association, Comrade Festus Osifo, said, “Yes”, adding that there are a few things that must be considered.
Osifo said: “Today, if you look at the cost of importation of PMS and even the cost to produce locally because the primary source is crude and that crude is sold at international price.
“The crude cost contributes over 80 to 90% of the overall PMS cost. So it will not necessarily bring down the price.
“So, the reason we are agitating that the refineries should be working is practically because we want more jobs to be created and we want the value chain to be deepened.”
Osifo also dismissed reports that a litre of petrol will cost N750 per litre if subsidy is removed, adding that the calculation was based on a black market exchange rate
He emphasised that based on the official exchange rate, the product will sell between N360 to N400 per litre.
Osifo advised the Federal Government to increase its 20% stake in Dangote refinery, to further guarantee energy security.
