Former Vice President Atiku Abubakar says concerns raised by the Dangote Refinery over government-imposed petrol prices have strengthened his argument for a production-based fuel subsidy.
Atiku, through his Senior Special Assistant on Public Communication, Phrank Shaibu, said on Friday that Dangote’s warning against forcing private refineries to sell petrol below cost was a legitimate business concern.
He said his proposal was not to compel refineries to sell at a loss but to reduce the cost of crude supplied to eligible domestic refineries through a transparent and independently monitored system.
“We are restoring subsidy through a production subsidy model, not an import subsidy model,” Atiku said.
Under the proposed model, government support would follow crude refined locally, with measures including capped assistance, electronic tracking of crude and refined products, domestic supply obligations, and regular audits.
Atiku said the policy would enable local refineries to produce fuel more competitively while protecting consumers from high petrol prices.
He also argued that any additional government intervention to reduce pump prices must be openly funded, budgeted, and audited rather than imposed on private refiners.
The former vice president urged the Tinubu administration to engage with the substance of his proposal rather than misrepresenting it.
The government has previously opposed Atiku’s production-subsidy proposal, arguing that the removal of petrol subsidy was necessary to create a viable market for private refining investments such as the Dangote Refinery.
