President Bola Tinubu is contemplating the implementation of a “transitory subsidy” on petroleum in response to the escalating crude oil prices and foreign exchange rates.
According to The Cable, although no decision has been made as of yet, insiders within the presidency stated that the idea is “firmly on the table” as the country’s citizens continue to suffer from the effects of the termination of the petrol subsidy in May 2023.
Already, unions have warned an indefinite strike if petrol prices continue to rise.
On Monday, the Kenyan government reinstated gasoline subsidies in an effort to rein down the skyrocketing costs of petrol, kerosene and diesel.
The action followed months of violent anti-government rallies over the burden of high living costs.
According to a presidency official, the “realistic” amount of petrol consumed in the country is now known following the removal of subsidy on Tinubu’s inauguration, hence the amount spent on subsidy “can now be controlled”.
This is thought to be an option for Tinubu to maintain current rates, while private importers have not made a firm statement on any potential changes.
However, predictions about another hike in petrol prices (now above N600) have heightened anxiety across the country, leading to panic buying in the early hours of Tuesday.
Nigerians have seen price increases after Tinubu announced the termination of the petrol subsidy.
Foreign exchange difficulties, along with the unrelenting depreciation of the naira Nigeria’s domestic currency have resulted in a sustained increasing trend in the pricing of goods and services.