Industry key player and CEO of Rainoil Limited, Gabriel Ogbechie, has claimed that the federal government has resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.

Ogbechie made this statement on Tuesday during the Stanbic IBTC Energy and Infrastructure Breakfast Session held in Lagos.

He pointed out that with Nigeria’s daily fuel usage at 40 million liters and the foreign exchange rate at N1,300, the government’s subsidy per liter of fuel falls between N400 and N500, culminating in a monthly total of approximately N600 billion.


“When Mr. President came May last year, one of the things he said is that Subsidy is gone. And truly subsidy was gone because immediately the price of fuel moved from 200 to 500 per liter. At that point truly, subsidy was gone.


“During that period, Dollar was exchanging for N460, but a few weeks later, the government devalued the exchange rate. And Dollar moved to about N750. At that point, subsidy was beginning to come back.

“The moment the two markets officially closed, officially the market went to about N1,300. At that point, that conversation was out of the window. Subsidy was fully back on petrol. If you want to know where petrol should be, just look at where diesel is. Diesel is about N1,300 and petrol is still selling for N600.

“So I can tell you for free that there there is at least N400 or N500 liters subsidy on petrol today. If you look at our daily consumption, say 40 million liters, and we’re spending N500 per liter, that is about N20 billion every day, N600 billion every month and 7.2 trillion yearly depending on how we look at it. So, subsidy is definitely back on petrol,” he said.

Furthermore, he said that NNPC being the only petrol importer in the country implies that there is an ongoing subsidy, as prices had to be fixed.

“And if you look at it, NNPC remains the sole importer of petrol in this country because there is subsidy on petrol so the price has to be pegged,” he added.

What you should know
Recently, the idea of reinstatement of fuel subsidy has been a contentious topic in public discourse, with several observers maintaining that the federal government has restarted the subsidy on petrol since its removal on May 29, 2023.

Earlier yesterday, the former governor of Kaduna State, Nasir El Rufai, said the federal government is spending more on petrol subsidy than before.

In addition, the Special Adviser to the President on Energy, Mrs. Olu Veŕheijen, said that the Federal Government reserves the right to pay fuel subsidy intermittently to cushion hardship in the country.

“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,” she said.
On its part, however, NNPC has insisted that no subsidy is paid to its account from the federal government.

Addressing the issue in August 2023, the GCEO of the oil firm, Mele Kyari, stated that the company is only recovering the cost of import, adding that the federal government hasn’t paid a subsidy since May.

“I told you there’s no subsidy whatsoever, we are recovering our full cost from the products that we import. We sell to the market, we understand why the marketers are unable to import. We hope that they do this very quickly and these are some of the interventions the government is doing. There is no subsidy.” Kyari said.

helinues:
Claimed with no substantiation.

Hahaha, see clowns.

How much debt have we serviced?

How much have we borrowed?

All this hullabaloo is all about how Naira has been able to grain strength without government backing.

Emefiele was briefly questioned and released to give revelations about some important things.

Make una continue to dey beside the river bank and be waiting for the blinking of a crab

helinues:
Claimed with no substantiation.

Hahaha, see clowns.

How much debt have we serviced?

How much have we borrowed?

All this hullabaloo is all about how Naira has been able to grain strength without government backing.

Emefiele was briefly questioned and released to give revelations about some important things.

Make una continue to dey beside the river bank and be waiting for the blinking of a crab

Godfullsam:
Nigeria and Nigerians are very difficult to govern.

You remove subsidy, they complain.


You reintroduce subsidy, they still complain.

Lizzysamuel:


Even ordinary Jerry can fuel stand, you don't have. But you're trash talking a major oil mogul. Kai APC sychophants no go kill person

Lizzysamuel:


Even ordinary Jerry can fuel stand, you don't have. But you're trash talking a major oil mogul. Kai APC sychophants no go kill person

nlreserve:
no mind Helinues. He's on every thread defending them. I strongly believe he's been paid to do this. A normal man who is not benefiting can't be doing this without a rethink

Lizzysamuel:

Stop saying nonsense.
The government is lying and you want the masses to continue being lied too?
We are paying subsidy and fuel is still over 600.
Must you guys always reason low?

Lizzysamuel:

Subsidy was fully back on petrol. If you want to know where petrol should be, just look at where diesel is. Diesel is about N1,300 and petrol is still selling for N600.

Biodun556:
Anything about subsidy would be over in 2 months time

ivolt:

No, subsidy stays unless you want petrol to be at at least #800 per liter.

Lizzysamuel:
Dear Agbadorians,
ot, you should always demand for accountability from your leaders and not move like sheep

hedonido:


So if a whole Rainoil owner is talking about a matter like this, a worthless, lowlife, never do well nonentity like you would dare to spew very useless counter opinions?

hedonido:


So if a whole Rainoil owner is talking about a matter like this, a worthless, lowlife, never do well nonentity like you would dare to spew very useless counter opinions?

helinues:


Thank you for the commendation.

So as Muslim Muslim ticket, infact Shettima precisely suggestion came before any person on Nigeria social media. Baba n la record.

Follow those who sabi road, cos if you wan dey do eti kunkun, you go get lost

duduade:
FG s cup of tea o

We were told subsidy had been removed

That's what we stand by

Lizzysamuel:


Else commenting has turned you into a more dumb person.

Just read this your comment and see how empty it portrays you