You are currently viewing Much ado about Fuel subsidy removal | Babajide FADOJU

Much ado about Fuel subsidy removal | Babajide FADOJU

While the allocation for subsidy lasts till June of this year, allocation doesn’t mean that the federal government has the money to pay for the subsidy. There is already a significant debt on the government due to subsidy payment.

The Petroleum Industry Act ensures that no individual player can control more than 30% of the market and this includes the NNPC. This ruling will engender fair market competition and truly set the mechanism of demand and supply as the true price fixer in the market.

Under the current Petroleum industry act, prices of petroleum products will be subject to the forces of demand and supply, allowing prices to be fixed naturally. No individual company no matter how powerful will be dictating to the market. This is one of the beauty of oil subsidy removal.

This development does not mean that consumers will be left exposed and exploited. There are agencies and watchdogs that will ensure that customers are fairly treated.

What NNPC did was to publish her own fuel price, it is not a general market list as the company has no means of enforcing the price on the market. Others will sell for lesser or higher depending on the mechanics of their own operations.

The future of petrol supply to the local economy is quite stable. With the new state-of-the-art Dangote refinery, there will be no problems with servicing the needs of NIGERIA and NIGERIANS FIRST.

Despite the hearsays and conjectures here and there, here is what you should know about the fuel subsidy removal and what it means for you.

To save our economy
We must kick Subsidy out

My Nigeria Succeed

Babajide Specs FADOJU
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