Bucky Hassan on the removal of fuel subsidy

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Fuel Subsidy Removed

Fuel subsidy has been scrapped. Anyone can import fuel but the pump price has been capped at N145.

Please note the price is not set at N145 – it is capped at N145.

Deregulation has finally hit the market and Nigerians will be paying full price for petrol. This will be a huge blow to ordinary Nigerians who are already struggling and suffering the effects of our poor economy.

So why are we paying more when the price of oil has fallen drastically? One simple word – ‘devaluation‘. If Petroleum importers have to source foreign exchange at black market rates of N320 – $1, then we need more naira to buy products sourced in dollars.

While I am against anything that burdens the average Nigerian, sadly, this is the horrible economic reality of where we are. Previous governments frittered and squandered our resources. The government can no longer keep spending foreign exchange the country does not have, to import fuel.

The effects of the severe plunge in oil prices, our dwindling foreign exchange reserves, and unofficial devaluation of the Naira shows clearly that the country needs to speed up pursuing a non-oil dependent economy.

To solve our power and fuel issues, the Govt seriously needs to start thinking out of the box.

PS. I hear NNPC will still sell at N86:50? Is this correct? Can anyone confirm this?

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6 COMMENTS

  1. PLEASE READ THIS AND DRAW YOUR CONCLUSIONS. Chief Joseph is a petroleum importer. He imports 10 million litre of petrol at the of cost of N95 per litre. He report to the DPR that he has imported 15 million litres at the cost of N105 per litre, requesting N30 subsidy per litre. DPR sends Mr. Yusif a inspection and monitoring officer, to measure and verify the authenticity of the claims. Chief Joseph offered Mr. Yusif a bribe of the applied subsidy in liew of 1 million liters, which Yusif reject instantly, requesting that of 3million liters so that, it can comfortably go round to his bosses. Apparently they ended up agreeing on 2.5m liters each. The deal is strucked, Mal. Yusif and his Bosses ended up with N75,000,000 while Joseph, the importer gain N400,000,000 on the deal They jointly cheated the government the sum of N175,000,000. Finally Chief Joseph divert 75% of the product to the black market and sell at N120 per liter to the masses. Later the government will also pay the cost of transporting 15 million liters to the allocated filling stations across the country. Thats exactly the case of petroleum subsidy in Nigeria. So isn’t it better for the government to invest those savings of hundreds of Billions of Naira wasted every year on subsidy, on life touching projects? ****** NB: I did not write this.

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