APC campaign council asks Atiku to explain plans to fund petrol subsidy

The APC Campaign Council has challenged former Vice President Atiku Abubakar to explain the legal, fiscal and practical basis of his proposal to introduce a production subsidy for locally refined petrol.

The council, in a statement by its spokesman, Dele Alake, on Sunday, said Atiku should explain how the proposed subsidy would operate within the Petroleum Industry Act, 2021.

It said Section 205(1) of the Act provides for market-determined wholesale and retail prices of petroleum products.

The council also cited the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, which recently said it does not fix pump prices or issue administrative price templates except where statutory conditions for intervention are met.

“Alhaji Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price,” the statement said.

“If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act.

“If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations.”

The council also questioned the cost and funding of Atiku’s proposal, saying preferentially priced crude for domestic refineries could reduce revenues accruing to the Federation.