Amid escalating concerns over the adverse effects of fuel subsidy removal, President Bola Ahmed Tinubu is reportedly deliberating the possibility of reversing this policy to alleviate the hardships faced by the less fortunate.
It can be recalled that shortly after President Tinubu’s inauguration, a series of reforms were introduced, including the removal of fuel subsidy and unification of the foreign exchange window. These measures swiftly led to pronounced macroeconomic impacts, manifesting as price escalations in transportation, commodities, and services.
A presidency official revealed that the removal of subsidy has now enabled a more accurate assessment of the actual fuel consumption in the country, consequently affording better control over subsidy expenditures.
The substantial challenges engendered by these policies triggered nationwide protests orchestrated by organized labor unions, urging the government to reconsider its decisions or promptly address the widespread distress and suffering among citizens.
On Monday, August 14, reports circulated about a potential hike in petrol prices from N617 to N720 per litre, driven by escalating crude oil prices and foreign exchange rates.
The ensuing speculation has heightened tensions nationwide, leading to panic buying in the early hours of Tuesday. However, the Nigerian National Petroleum Company (NNPC) Limited assured the public that there are no plans to increase pump prices despite the prevailing factors such as rising crude oil prices, higher landing costs, and a depreciation in the value of the naira.
Meanwhile, sources from The Cable report that given the present economic realities and a potential lack of anticipated outcomes from the existing policies, President Tinubu is contemplating the reversal of the subsidy removal. While no final decision has been reached, this proposal is under active consideration.
The same official stated, “The ‘realistic’ amount of petrol consumed in the country is now known following the removal of subsidy on Tinubu’s inauguration, hence the amount spent on subsidy ‘can now be controlled.'”
This development comes just a day after the Kenyan government reinstated fuel subsidies to counter escalating prices of petrol, kerosene, and diesel within their country.
As discussions continue and considerations unfold, the possibility of reverting the fuel subsidy removal underscores a commitment to safeguarding the well-being of the economically vulnerable, fostering social equity, and responding to the evolving socio-economic landscape.
