Monday, January 16, 2012

Guardian - Removal of fuel subsidy (2)

See also part (1) posted below 9 January


Guardian
10 January 2012


FOR many years, one issue that government has been unable to resolve satisfactorily is whether or not fuel subsidy is real or contrived. And if indeed it existed, who are the beneficiaries? Tied to this controversy is the fact that successive governments had repeatedly removed the so-called subsidy without an apparent end to its continued existence. In the recent past, the government actually declared that there was no longer subsidy on petrol, only for Nigerians to be asked again to bear the burden of another fuel price increase! The oil subsidy question has, therefore, continued to recur in public discourse. It has become a category of energy economics in the country as well as a perpetual reminder of the dependency status of the national economy. It is also a pointer to the endemic corruption in the petroleum sector of the economy.

The increase in pump price of the premium motor spirit (PMS) started from the Gowon administration, 1966-1975.

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