FUEL SUBSIDY REMOVED

This is the announcement that greeted us in Nigeria on January 1, 2012....

PPPRA Announces Formal Removal of Subsidy on Premium Motor Spirit (PMS)
Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004.

By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly and posted on the PPPRA website.

Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012.

Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding.

The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.

The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.

In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.

Signed:
Reginald Stanley
Executive Secretary, PPPRA

New Year's day was supposed to be a day of joy and celebration, but all that was short lived for Nigerians. The fuel subsidy removal is in place, thus opening way to not just higher cost in the price of fuel at N141 but HIGHER EVERYTHING! Tomato, bread, pepper, garri, transportation, you name it, petrol is to all these things what blood is to the body.

I'm quite livid and not sure what to write but when people wake up on a day that's supposed to be celebratory and they are greeted with bad news, how do you expect them to react? With Jubilation and rose petals? Of course not! This same sentiment is being echoed every where.

Speaking for myself, it's bad enough that I generate my own power 80% percent of the day, generate water, get crappy accommodation at New York City price, pay this, pay that and then I get hit with double in the cost of filling up my gas tank. On top of all that, when I go to church now to pray to God to come down from heaven and deliver manna, I have to do it with one eye open, in case the parishioner next to me is a suicide bomber in disguise.

Sometimes when we speak of these things it doesn't start making sense until one starts number crunching.

All of this 2 week holiday (a working one for me), I have been going through a gallon of diesel at N4,000 a day because it's too damn hot and we kinda need entertainment while we sit at home to avoid the toll gate. I find myself now having to choose between the toll gate and the blind beggar when I consider putting my lose notes (lower denominations) to use.

On a normal day it costs me the same amount, N4000 to fill up my car. That should actually last me at least 3 days, but because we spend hours in traffic jams thanks to the lack of adequate road networks, that stuff burns out really fast. I have to make the choice between filling my tank for N8000 or filling my generator so I can have a restful night. I'm literarily burning my meager earnings. I wonder what the jobless and lower income earners would do.

The annoying part is that they keep saying the fuel subsidy is benefiting the rich! Are you serious? Like really serious? Do I look like 'the rich' with my jalopy car that I'm managing? I'm absolutely befuddled and being Nigerians we will still pay because we have to survive. When will we start LIVING? Let me rephrase that, when will THEY allow US to start LIVING?

It all just seems highly unfair and insensitive. I understand the need for the removal of subsidy and the fact that government needs to cut down. I would not be so groused if the basics were in order but the fact is that they are not. So why should I be punished for the ineptness of those in leadership to do the needful? Tomorrow they will come back and be singing 'vote for me' songs right? Well, let's keep watching and see where this goes or how long it will be sustained. One thing I know for sure is that when price goes up in hard times, when good times roll around, they somehow forget to bring price down. Meanwhile, I'm now definitely buying a bicycle...no toll, no petrol for short trips to the Palms/Shoprite for grocery. Please kindly avoid knocking me off!

(photo credit: indepthafrica.com)