145 is a new figure that rings bell in the ears of every Nigerian. It is the official new pump price for the Premium Motor Spirit (PMS) popularly known as petrol, after the Federal Government of Nigeria removed fuel subsidy on the product.
The significance of the removal of fuel subsidy means the price of fuel will increase from the regular 87 Naira per litre to about 145 Naira per litre. That is over 60% increase.
The removal of fuel subsidy in Nigeria is long overdue, it is the right path in a good direction as there has been lots of sabotage and diversions by oil marketers who have been milking the economy dry by illegal and dubious means. If the money generated from fuel subsidy can be diverted to infrastructural development and economy building, it will go a long way in growing our economy.
The removal of fuel subsidy is going to be a nightmare to many Nigerians as the cost of everything you can ever think of is expected to skyrocket. The increase in fuel price will mean increase in the cost of running businesses, increase in the price of raw materials, increase in transportation and of course decrease in the standard of living as there won’t be any significance increase income.
With the removal of fuel subsidy in Nigeria, Here are the biggest losers and winners from the fuel subsidy removal
Fuel Subsidy Removal
Biggest Winners
Federal Government: The federal Government is the biggest benefactor from the removal of fuel subsidy. This will mean that the Federal Government of Nigeria will have more money to save in foreign reserve and also more funds to execute public projects as there won’t be siphoning of public funds through diversion by oil marketers. Unlike in the past where the federal government gives oil marketers funds to run their business through reduction in customs duty, low levies etc
Fuel Station owners: What this means is fuel stations can now sell fuel at whatever amount they buy regardless of how much they bought it.
Oil well Owners: Owners of oil well also stand to gain a lot of money from the removal of fuel subsidy as there will be more demand for crude locally and these owners of oil well can easily trade crude oil for refined one and still sell for higher profit.
The cabals: They are the ones responsible for sabotaging, fixing of oil price, they will find a way to regulate the market in their favour through unions and connections from government officials
Governors: With the removal of fuel subsidy, there will be more money for the federal government which also means more allocation for Governors in Nigeria
Politicians: Our politicians have a way of using events like this to blackmail and achieve their personal interest.
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Biggest Losers
- Oil Marketers : Oil marketers will suffer the heaviest blow as there won’t be free money and business as usual which in the past, the federal government provide them funds to import fuel, now the marketers will have to source for foreign exchange to source for the commodity. This will cause a lot of them to either close up or merge with top level Oil marketers as they might not be able to compete with the big names.
- Manufacturers: Local manufacturers will have to be ready to buy raw materials at a slightly higher price and there will be significant increase in the cost of running the business
- Workers : Nigerian workers will feel the biggest blow as there might not be increase in salaries but the price of everything will definitely be inflated
- Nigerians: Nigerians from all works of life will feel the wrath of this removal due to the fact that there will be
- Black marketers: With the removal of subsidy, there wont be need for queues at the filling stations as there will be more fuel available for disposal. What this signifies is black marketers will no longer be patronised.
