Tinubu Government Provides A Monthly Petrol Subsidy Of #1 Trillion — Pinnacle Oil MD

President Bola Ahmed Tinubu 

Tinubu declared the end of the subsidy regime in his inaugural speech on May 29, 2023, hoping to deregulate the downstream sector in accordance with the Petroleum Industry Act (PIA).

Fuel pump prices immediately skyrocketed as a result of the decision, raising the possibility that the government had stopped intervening in price fixing.

The International Monetary Fund (IMF) and other foreign organizations, in particular, have countered that the depreciation of the naira should have caused the price of fuel per liter to rise from about 600 to over 1,000, indicating that the government is covertly providing a subsidy on the commodity.

According to Dickerman, the government is currently providing significant gasoline subsidies. This was revealed during panel session six on Nigeria's Downstream Forum at the recently concluded Nigeria International Energy Summit (NIES) in Abuja.

The CEO of Pinnacle Oil stated that the reason the product is still being smuggled into neighboring countries is because the Federal Government continues to provide a substantial subsidy.

The Managing Director/CEO of Pinnacle Oil and Gas Limited, Robert Dickerman, claims that the President Bola Tinubu administration currently pays a monthly petrol subsidy of one trillion dollars.

According to him, this practice explains why Nigerian product prices are still the lowest, which promotes smuggling to nearby nations.

He declared, “With legacy monetary policymaking currency exchange difficult, we desperately need Foreign Investment. This is a reality. So the best policy during this time of crisis is a national policy to transform our economy/regulations/laws to accommodate and encourage FDI.

“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: Conservative fiscal policy. tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of PMS Price.”