The Fuel Subsidy Dilemma: Illusion vs. Truth #corruption

let's talk about something that's been on everyone's mind - fuel subsidies. Is it really gone, as the government claims, or is there more to the story?
If we followed what the NNPCl DG Said few months ago, shortly after the removal of subsidy when there was a second hike in the pump price of PMS. The NNPC DG had this to say: that the forces of demand and supply across the globe will determine the pump price of PMS in the country. Well, that is half-truth. That is not the real cause.
Petroleum products are traded in dollar due to the petrodollar agreement with Saudi in the 40’s
And there’s technical devaluation of our dear naira know as: the liberalization of the exchange rate across all platforms. Dollar to a naira is about 1000 naira now. What do you think will be the landing cost of petroleum product like gas PMS, kerosene and other? Oh, and by the way a barrel of crude is about a 100 dollar now.
Whether we like it or not the word subsidy is not gone long as the PMS pump price still remains the same.
The only way subsidy can be taken out, is when we have self-sufficiency in production of petroleum products. If government should allowed the end users that is, the citizen bears the burden PMS might just hit that 1000-naira mark, and diesel could skyrocket to over 1400 naira.
But hold on, the government's got a little something up its sleeve. A few months back, the president's spokesperson reassured us that PMS prices wouldn't go up again. How's that possible? Well, there's a nifty CBN arrangement to support petroleum imports, covering any fluctuations in the exchange rate
Now, whether you agree with me or not, this smells like subsidy in another form. The government only tries to reduce the burden of subsidizing fuel on itself, but let's face it, it's still there.
If we look at it closely, a barrel of crude oil costs about 100 dollars, and our exchange rate is about 1000 naira to a dollar. No foreign refinery is going to accept our currency or theirs when it comes to anything related to petroleum products. Blame it on that petrodollar arrangement between the US and Saudi Arabia.
Remember the good old days when we could ship our crude oil to foreign refineries without buying the crude and without paying for refining costs, just the carriage? Well, that ship has sailed. That’s why some folks think there’s a lot of corruption going on at NNPC and is calling for a probe. And honestly, in such an arrangement, there shouldn't be any subsidies. But NNPC, they've got a different story
With The petrodollar arrangement and the liberalization of exchange rate, importers of petroleum products such as: PMS, AGO, Kerosene and liquidity gas will pay more in naira when exchange to dollar to refinery and import back to the country.
If the pump price of PMS still remains what it is today, the government will be paying subsidy it may be in a different way probably in different way different from previous administrations.
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