WHY? Fuel Subsidy is gone, as announced by PBAT
WHAT IS FUEL SUBSIDY?
In simple terms, this is when the government gives financial support to oil companies so as to reduce the price of fuel for its citizens.
The FG spends about N40.1 billion* daily, subsidizing every litre of petrol consumed in Nigeria by at least ₦600
WHAT HAPPENED !!!
President Bola Ahmed Tinubu during his inauguration today May 29th, 2023, has stated that Fuel Subsidy was not included in this year’s budget, also it’s no longer sustainable by the federal government, hence, it’s gone .
WHAT DOES IT MEAN?
This simply means that the government will stop subsidizing the cost of fuel and the price will now be controlled by market forces (supply and demand)
A GOOD POLICY OR BAD POLICY?
Truth be told, very few top Nigerians are the ones enriching themselves with fuel Subsidy.
Let me cite some examples;
1. Some oil marketers buy this fuel from Nigeria depot’s at say N180 per litre and take it to neighboring West African countries such as Niger, Cameroon, Chad and sell it for above N500 per litre
2. NNPC now generates zero revenue, with the excuse that 90% of the revenue was used to service fuel Subsidy
3. Nigeria is in major debt
Therefore, It’s a good policy
This removal however is coming at a time where common Nigerians are trying hard to cope with high cost of foodstuffs and materials.
But the deed has been done.
WHAT TO EXPECT?
It is expected that the cost of fuel will spike due to the announcement, even as long queues resumed today at major filling stations.
It is predicted that the cost of PMS (Petrol) will rise significantly, be prepared for an estimated N500 per liter, at least.
FINAL ADVICE!!!
“`1. Don’t live above your means, spend less than you earn
2. Go for only what you can afford and avoid borrowing what you can repay
3. Get multiple sources of income
4. Eat well and sleep well
5. Thinking too much will not solve any problem, it will only increase your health problems
6. Help those you can, in whatever way you can
7. Ask for help when you need it
8. Pray at all times“`
May this new government favour us
SOURCE: Social Media.
