As Government Cuts Fuel Price: By Musa Godwin. Despite the sterling effort made by the Goodluck Jonathan administration last weekend to reduce the pump price of petrol from N97 per litre to N87 per litre, it seems that rabble-rousers are bent on rubbishing the policy which has begun to have benevolent effect on the citizenry. Already, the National Union of Road Transport Workers has reduced the cost of transportation in response to the new policy, and Nigerians now spend less on transportation. That is why the plans being hatched by some people to approach civil rights groups and make them protest and agitate for more reduction in fuel price flies in the face of reason. The truth is that given the current volatility in the crude market price, it would seem irresponsible for the government to give Nigerians a false hope with a larger drop in fuel price only for the market to rise again. With this recent cut however, we are assured that the federal government will continue to review the price according to a determined watch of the international market. Besides, on research, the N87 is actually a bit lower than the equivalent parity in crude cost. The Minister of Petroleum Resources, Diezani Alison-Madueke has been relentless in explaining the basis for the calculation that led to the N10 cut in her media interviews (NTA, AIT and Wazobia). She has gone to painstaking details to give the background of the issue and the concern of the government to ensure it put in place a workable price regime that can stand the test of time. As a consequence, there is now a better understanding of the mechanics behind the cut by a broad section of the people. Indeed, this is one of the rare moments in our country’s history when the government reduces rather than raises the price of this essential commodity. Nigerians, who are generally used to the periodic increase of petroleum prices no doubt, found this gesture a pleasant surprise. Even more surprisingly, the Petroleum Minister told newsmen on Sunday at the Presidential Villa, Abuja, that the new price regime would take effect immediately. It meant that from that very day, the people would enjoy what is no doubt an unexpected largesse. The fact that all this happened without the usual pomp and pageantry that accompanies such a major policy shift is again a testimony to the modesty of the Goodluck Jonathan administration. It is true that for a while now, there have been calls on the administration to reduce the price of petrol to reflect the falling price of a barrel of crude in the international market. Indeed, barely two weeks ago, the Trade Union Congress [TUC] had asked the government to take advantage of the falling oil prices to reduce retail prices of petroleum products. However, in announcing a series of austerity measures necessary to tackle the shortfall in revenue accruing to the federation account, the Minister of Finance, Ngozi Okonjo-Iweala, had insisted on December 17 that Nigeria would not reduce the pump price of fuel despite falling oil prices at the international market, until the revenue crisis occasioned by the dwindling oil rates is over. The Minister explained that the decision to review fuel price either upwards or downwards would only be taken after the current crisis in global oil prices had been settled. Since then, the opposition had turned the matter into a cause celebre, taunting the PDP-led government at the centre for failing to reduce the price of fuel for domestic consumption as the price of crude in the international market fell. Against this background, the announced reversal of policy to the advantage of the ordinary citizen was quite admirable. For ordinary Nigerians unconcerned with the way politicians use every issue to score a point, the benevolent effect of this government cut in price goes beyond merely being able to fill his or her tank at the gas station with less money. It also, and more importantly, means that he will pay less for other ancillary services. Considering that in Nigeria, pump prices seemed to affect the cost of everything from school fees to medical bills, the multiple effect of taking off N10 from every litre of fuel sold at the gas station will be far reaching indeed. This is especially crucial in a subsistence economy like ours where road transportation forms the fulcrum of our public transport system. From workers who commute daily, to transporters who take farm produce and other goods to the market, to traders, farmers and school children who will now pay less than they have done these past two years when PPMS rose to 97 naira per litre, the benevolent effect of this reduction in fuel price is huge indeed. One only hopes that all others whose activities would be impacted upon by this reduction in prices will be quick to show similar good faith by reducing the price of their products or services. It is only when those who have always blamed the high price they charge for their services on the cost of fuel take this gesture to heart and reduce the prices of their own businesses that the ordinary Nigerian will be expected to reap the full benefit of this gesture. In reducing the price of fuel at the gas station, the federal government has proven that whatever measures it takes to deal with the crisis in the economy, it will be quick to provide necessary cushions whenever the need arises. This gesture will no doubt increase the people’s confidence in the policies of the government of President Jonathan. It is proof that the government has a plan to deal with our economic challenges and is following this plan to the letter. One only wonders what new horse the APC will flog now that the administration has taken away its favourite subject. Nigerians always say that what goes up must come down, except the price of petroleum in the gas station. Now, the Goodluck Jonathan government has proven that for a government that knows its onions, even fuel prices could be made to obey the law of gravity. It will be unfair and uncharitable for anyone to seek to denigrate that gesture to score political points right now. — Godwin, a public affairs analyst wrote in from Abuja Category: Product #: Regular price:$ (Sale ends !) Available from: Condition: Good ! Order now! Reviewed by on. Rating: Original link Read More goo.gl/Pivmtt (y) ✍comment ☏share
Posted on: Fri, 23 Jan 2015 23:45:19 +0000
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