Fuel Price Discount Is Hidden Subsidy, ADC Chieftain Okonkwo Alleges

A chieftain of the African Democratic Congress (ADC), Kenneth Okonkwo, has accused President Bola Tinubu’s administration of reintroducing fuel subsidy through its 30-day petrol price discount.

Okonkwo made the allegation on Sunday while speaking on Inside Source, a programme on Channels Television.

The former Nollywood actor criticised the Federal Government’s position that the temporary reduction in petrol prices was a discount rather than a return to subsidy.

According to him, both measures serve the same purpose by reducing the amount consumers pay for fuel.

“Sorry to say this, Taiwo Oyedele lied when he said it was not a subsidy. It was a subsidy,” Okonkwo said.

He argued that the government introduced the price reduction in response to the high cost of petrol and the financial pressure on Nigerian households and businesses.

Okonkwo said the reported reduction in petrol prices from about ₦1,500 to ₦1,350 per litre showed that the government recognised the need to ease the burden on consumers.

“What were they trying to do? They were trying to reduce costs. They acknowledged by themselves that the cost was becoming unbearable for the people and they had to intervene to give relief for the people,” he added.

The ADC chieftain’s comments come amid debate over the Federal Government’s 30-day petrol price discount and whether the intervention should be regarded as a form of fuel subsidy.

However, Okonkwo’s characterisation of the discount as a subsidy remains his allegation; the two terms may have different implications depending on how the price intervention is funded and implemented.