These Errconomists. You Can Change Mouth!!

  • Do nothing. The marketers will blink or Nigerians can start trekking.
  • Increase the pump price of fuel above open market price but maintain price controls with the PPPRA template. As a sweetner, announce you have ended subsidy and hope that the actual price never rises above this new controlled price so you don’t have to pay subsidy again. Nigerians will have to adjust
  • Liberalise and let the market determine the price and let marketers compete. Price will go up and Nigerians will have to adjust but you would have truly ended subsidy
  • Scarce FX
  • Rising crude oil prices, meaning rise in landing cost of refined petrol
  • Due to the above, expected open market price is higher than pump price hence marketers are demanding subsidy
  • But government has already announced ending subsidy.
  • We are in a recession and Nigerians have seen record inflation erode their purchasing power
  • Nigerians have adjusted to a significant increase in fuel price once under Buhari when goodwill was high. Approval rating for Buhari then according to NOI polls was over 70%. Today it is 39%. Nigerians are unwilling to accept a new significant increase from government
  • Fuel scarcity is looming.

--

--

--

A Beautiful Mind

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Tunde Leye

Tunde Leye

A Beautiful Mind

More from Medium

The Pharmaceutical Industry in Africa

Daily Meditations — Freedom — 3/8/2022

My Science Newsletter Recommendations

Astral Projection #1 — My First Astral Projection