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Rising crude oil prices, foreign exchange rates: Tinubu govt plans ‘temporary subsidy’ on petrol

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Amid rising crude oil prices and crazy foreign exchange rates with cumulative effects on landing cost of imported petrol, President Bola Tinubu, might be proposing a “temporary subsidy” on petrol.

Nigerians have continued to groan under harsh economic realities following the removal of petrol subsidy in May 2023 by President Bola Tinubu at his inauguration.

Persecondnews reports that the Kenyan Government had on Monday re-introduced fuel subsidies to curb soaring prices of petrol, kerosene, and diesel in the country.

The government took the decision following months of violent anti-government protests over the burden of high cost of living.

According to sources at the Presidency, the proposal for re-introduction of “temporary subsidy” is in the offing.

“This is firmly on the table but there is no final decision yet,” the source said.

The source said “realistic” amount of petrol consumed in the country is now known following the removal of subsidy on Tinubu’s inauguration, hence the amount spent on subsidy “can now be controlled”.

Meanwhile, the organized labour have threatened to embark on an indefinite strike should the petrol pump price continue to rise.

On Monday, the Nigerian National Petroleum Company Limited (NNPCL) has denied planning to increase pump prices in spite the rise in crude oil prices, landing cost, and fall in the value of the Naira.

Marketers had indicated that by next week, petrol price will rise to N720 per litre because of the landing cost of the commodity and the surging exchange rate.

 

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