I had an article penned last week, it’s still in draft – I had just read about what Jokowi was doing with subsidies from The Economist and it was perfectly in line with a coffee shop discussion I was having in Accra with a friend… a modified version of Brasil’s Bolsa Familia which eliminated subsidies and gave the money directly to the poor people. And then the news broke yesterday…
In this piece from Aguntasolo.com all the points I was going to cover are well explained so I’m reblogging here. Interestingly we even had the same views at the time of the #OccupyNigeria protest. I’ll do my piece later (or maybe not… we’ll see). While you’re at it follow @doubleEph. He’s really good.
Government will continue to pursue full deregulation of the downstream petroleum sector. However, given the hardships being suffered by Nigerians, and after due consideration and consultations with state governors and the leadership of the National Assembly, government has approved the reduction of the pump price of petrol to N97 per litre. The Petroleum Products Pricing Regulatory Agency (PPPRA) has been directed to ensure compliance with this new pump price
That was President Goodluck Jonathan on January 16th, 2012 backing down from the earlier announced N141/litre that would have all but eliminated the subsidy paid on petrol by the government.
Until yesterday, that price of N97 has remained the same. But what is petrol without crude oil? Here’s what the price of crude has behaved like since January 2012:
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