The politics of fuel subsidy in Nigeria amuses me!

When petroluem products' (read crude oil) price is high, the government will increase the pump price of fuel in response to the high prices.

When the prices are low, the government will retain or even increase the pump price of fuel.

They say it is done that way in order to recover subsidy. I don't understand. What do you think?



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Good question, 2tait.

Think about it this way: If crude prices were to keep dropping, and at every drop, govt reduces the price proportionately, it should get to a time were the product will be free. Which dont make sense.

The idea of subsidy is to keep costs low, in order to stimulate the economy. Unfortunately, that ain't the case.

I think govt should subsidise diesel rather, becos diesel actually runs the economy. Think of it, there will be a direct impact on production costs, which will go downward.

prices of fuel in nigeria - upward ever, downward never.