The fact that there is no more fuel subsidy must not translate to an increase in the cost of fuel. The regime of subsidy is imperative only because we import refined products.
Therefore, if subsidy must be removed, then importation of fuel must cease. Local refineries and particularly the Dangote refinery must come on stream.
However, the mere coming on stream of the Dangote Refinery and others will not crash the prices of fuel except the government stop deceiving by internationally pricing oil meant for local consumption in accordance with OPEC protocols.
The fuel prices can only crash in Nigeria, if and only if crude is sold to the said refineries at local prices and not international prices. All OPEC members have local production quota meant for their local consumption, however, over the years, the NNPC and their enablers in Aso Rock blurred the lines and have been computing oil meant for local consumption at international price regimes.
The Tinubu administration must sell crude oil to our local refineries at local price rates and that singular decision will ultimately crash fuel prices to about N150 per litre in Nigeria. In that singular stroke, there will be no need for subsidy and extant fuel price will reflect the fact and status of Nigeria as an oli producing country.
Tinubu is placed by destiny to reap bountifully from the timing of Buhari’s departure vis a vis the coming on stream of the Dangote Refinery; it is his to squander by not thinking deep.
President Tinubu got his strategy very wrong, on how he whimsically made the “no more subsidy” announcement.
If indeed, Dangote starts producing in July, and fuel subsidy has been pre-programmed to end by June, Tinubu should have simply called a meeting of Dangote and the NNPC for a roundtable conversation.
He should have ascertained the production cost of a barrel of oil; fix a price to sell a barrel of oil to Dangote Refinery that is marginally above the production cost; and fix a price for Dangote Refinery to sell fuel to Nigerians (I bet you, we won’t buy fuel above N150.) Then, addressed Nigerians and gleefully tell us that he has fixed the subsidy issue, and fuel prices have despite that crashed despite the removal of the subsidy.
All these ciuld have been achieved by September, 2023.. He would have been hailed as a genius…..but what did he do?
I strongly believe that President Tinubu had no deliberate strategic plan before he made the announcement at his inauguration. Now, he has thrown the economy into a tail spin and Nigerians into wailing and doubts of him.
Campaigns are over…..time for governance.
Some things are not rocket science.
In am in Warri, and oil refining city and I used N45,000 to top my fuel tank yesterday. I have not added the cost of fuel for my generators in the office and home.
This is not sustainable. If this matter is not fixed as an oil producing country soon, all will go burst.
