Thursday, November 5, 2015

Fuel Subsidies - Palliatives and the Seven Questions

Palliative: Treatment or medicine which relieves pain or alleviates a problem without dealing with the underlying cause.
Often used this: "short-term, palliative measures had been taken"

Synonyms: soothing, alleviating, sedative, calmative...
We have been told that the government is working on some palliatives before embarking on the removal of fuel subsidies.

Per the definition above, my questions are:
1. Which palliatives are we talking about and how exactly will they soothe the problem?
2. How long will they be in place and take effect before subsidies are removed? By the way, OPEC predicts that crude oil prices will rebound soon...meaning an increase in subsidy is imminent.
3. Which country in the world, with a mono product economy and with our oil production (barrel) per person ratio, currently subsidizes fuel prices?
4. What is the percentage of our revenue being used to subsidize fuel prices? In 2013, it was close to 20%.
5. What are our alternative revenue sources, to make up for the subsidies and when will they mature?
6. How do we pay for the programs intended to put infrastructure in place, diversify the economy and give struggling Nigerians the welfare package or jobs promised by this administration?
7. Why are we still keeping all the refineries and maintaining a full complement of overhead when that sector continues to be unreliable and not showing impending signs of turning a profit or adding value that brings down the cost of petroleum products?

SAN

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