Browsing: Fuel subsidy

During the period of the Great Depression, farmers were asked not to produce and they were paid for not producing. This intervention was carried out to stop food prices from falling; and to protect smallholder farmers. The two American presidents (Herbert Hoover and Franklin D. Roosevelt) both set price floors on agricultural products so that farm produce would not become tons-a-kobo. In 2005, Indonesia more than doubled fuel prices; while in 2008, the country increased fuel product prices by 25-33 per cent. What was realised through this measure were used to finance a cash compensation program to 15.5 million poor families. Jordan also adopted and implemented this mechanism that same time. It was a huge success for the two countries that shows how government can effectively use social safety nets as part of measures to reduce impacts of shocks when carrying out economic reforms.

“It is quite regrettable that a fuel station that sold at N590 a few days ago now sells at N610. One cannot help but wonder if President Bola Tinubu is the one controlling pump prices. Unfortunately, no one seems to have an answer to this question, as petrol cabals are back at work smiling to the bank and feeding fat on fuel subsidy remover. It is even sadder that some marketers and corrupt elements, who are angered that their ill-gotten wealth has been blocked with the removal of subsidies, have continued to unleash suffering on Nigerians.”