Former Minister of State for Defence, Senator Musiliu Obanikoro, has suggested that the Federal Government (FG) might be bridging the widening Dollar-Naira gap in determining the final price of Premium Motor Spirit (PMS), commonly known as petrol.

In an interview with Channels Television’s Sunrise Daily on Wednesday, Obanikoro shared his insights on the recent surge in petrol prices following President Bola Tinubu’s declaration to end the subsidy era.

Tinubu’s administration saw a significant increase in petrol prices, attributed to the collapsing foreign exchange rate, with the naira hitting an all-time low against the dollar.

While the World Bank and industry experts like Robert Dickerman of Pinnacle Oil and Gas Limited allege continued subsidy payments by the FG, human rights lawyer, Femi Falana, has called for transparency in fuel importation processes.

Addressing these concerns, Obanikoro emphasized the economic reality of the situation, highlighting the impact of the dollarized crude oil market on the local currency.

He suggested that the FG might be intervening to mitigate the effects of the currency devaluation, thereby indirectly subsidizing petrol prices to cushion the economic burden on citizens.

However, Obanikoro stressed the importance of clear communication from government representatives to clarify the subsidy situation and ensure transparency in policy implementation.

As the debate over petrol subsidy continues, the need for effective communication and transparency in government interventions remains crucial for public understanding and trust.