In a bid to alleviate the mounting economic pressures on Nigerians, President Bola Tinubu is reportedly mulling over the introduction of a “temporary subsidy” on petrol. The escalating crude oil prices and foreign exchange rates have triggered concerns, prompting the presidency to explore this option.
Although a final decision has not been reached, informed sources within the presidency have confirmed that the proposal is being seriously considered.
This move comes in the wake of public dissatisfaction following the removal of the petrol subsidy in May 2023, which has significantly strained the financial burden on the citizens.
The abrupt elimination of the subsidy has ignited waves of public dissent, with Labour unions issuing threats of an indefinite strike should petrol prices continue to surge. These concerns have prompted President Tinubu’s administration to contemplate the introduction of a limited subsidy to alleviate the immediate economic hardships.
Recall that the Kenyan government recently took a similar course of action by reintroducing fuel subsidies to counter the skyrocketing prices of petrol, kerosene, and diesel. The decision came following a series of intense anti-government protests driven by the soaring cost of living.
A key insider from the presidency revealed that the removal of the subsidy at the outset of President Tinubu’s tenure led to a clearer understanding of the actual petrol consumption patterns in the country. This newfound insight empowers the administration to exercise better control over the amount spent on subsidies, TheCable reports.
Although the prospect of a temporary subsidy offers hope of price stability, private importers have yet to make definitive statements regarding potential price adjustments. Amid these speculations, concerns have intensified, triggering a bout of panic buying across the nation, particularly in the early hours of Tuesday.