The PETROLEUM and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has advised the incoming administration to, as a matter of urgency, remove the petrol subsidy as part of efforts to facilitate the growth of the downstream sector of the oil and gas industry.
The call was made by PENGASSAN President, Comrade Festus Osifo, at the National Executive Council, NEC, meeting of the Association, held on Tuesday, in Abuja.
Osifo, stating that past administrations’ commitments to retaining subsidies in the country have adversely affected the cost of living and the economy at large, also said that subsidy has shrunk the country’s dollar reserve and further frustrated the exchange market.
While maintaining its stand on the removal of subsidies, he advised that the move would help the country save more and speed up infrastructural development across the country.
The PENGASSAN boss expressed the belief that the removal subsidy will have a positive impact on the nation’s foreign exchange which would in turn rub off positively on the citizens.
According to him, the issue of subsidy, if removed, we believe that the downstream sector of the oil and gas industry will actually grow much more if that sector is deregulated.
“And in the last seven years, we have actually maintained that stand. We have maintained our stance not minding some of the side effects. But again, if you look at these subsidy attacks we tend to be trying to hold on to something why we are losing in some other areas.