These are five reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.
