The Federal Government Did Not Remove Subsidy Because There Is No Subsidy At #86.5 Pump Price Of Fuel
Undoubtedly Nigerian's are face with a lot of hard economic atmospheric conditions but I strongly and fervently believe that it will come to pass and we will have a cause to smile tomorrow. Before you go to protest against the removal of fuel subsidy by the Federal Government, be informed that the government did not remove any subsidy because there was no subsidy to be removed in the first place.
So don't go and protest against what does not exist. Seek information and be informed. This is what the government has done. The government has simply stopped giving foreign exchange to fuel importers and has asked them to source for foreign exchange through secondary sources.
Why has the pump price of fuel increased from #86.5 to between #135 and #145? This is specifically as a result of the difference between the official exchange rate and the informal (parallel) market exchange rate. This is the simple mathematics. The official exchange rate is #199 per dollar while the parallel market exchange rate is #320 per dollar. This represents and increase of 37% (320-199/320 × 100 = 37.8%). This reflected exactly in the new price of petroleum as it increased from #86.5 to an average of #140 which is an increase of 38% (140 - 86.5/140 ×100 = 38%).
There may be a gap in the dissemination of information to the public and it is totally regrettable and I am sure it will be taken care of, but I encourage Nigerian's to seek the right information. I have always insisted that there was nothing like fuel subsidy and I stand by that.
The Federal government cannot continue to be the sole source of foreign exchange for the importation of fuel in the face of falling price of crude resulting in the depletion of our foreign reserve. It is unsustainable and cannot satisfy the domestic consumption of fuel in Nigeria. Nigeria get foreign currency from the sell of crude and the price of crude has fallen by over 70%.
This means that the government do no long have enough dollars to give to fuel importers. A lame man should be able to understand this. With the competition that will set in from the open market, it s expected that thee pump price of fuel will naturally crash in time.
Please share and enlighten every Nigerian.
Usman Mohammed
Department of Mass Communication
IBB University, Lapai-Niger State. 07060815443