Ask Leo: How Can Nigerians Financial Survive The Increase In Fuel Price?
The truth is that even though there are valid points both for and against fuel subsidies , they are a thing of the past.
The Nigerian people should expect a sharp and continuous surge in price as the government halts covering expenses relating to the distribution of petroleum.
Starting from June this year citizens would have to bear the entire cost of their gasoline usage as President Bola Ahmed Tinubu affirmed that there is no funding for petrol subsidies in the 2023 budget.
News came in after the inauguration speech on May 29th that fuel queues had reappeared and PMS was being sold at inflated rates up to N500 per litre. On Wednesday of May 31st NNPC Limited acknowledged the modification of gasoline rates.
Removing subsidies may be difficult at first and widely known. However, the general opinion among Nigerians is that it should be discontinued. The fact can't be ignored that the new rate variations(between 488 naira and 537 nairaper liter) aren't so unreasonable looking at rates in many other African nations.
An instance of this is that PMS is being sold for N1 200 per litre in Ghana, while N752 will get you a litre of PMS in Senegal and the same amount will cost you slightly more at N764 in Togo.
On the other hand we have to factor in that the Dangote refinery has commenced operation which might lead to competitive pricing and slightly lower prices.
Consider these tips on ways you can prepare yourself for the present situation concerning fuel increment.
Consider reducing your fuel consumption
Continuing with the same consumption habit might force you to spend many times higher than what you are presently allocating for gas. If you want to reduce your carbon footprint consider cutting back on vehicle usage and generator reliance. After some time has passed this will have saved you a lot of money.
Consider going solar
The lack of progress in electricity supply could leave you with no option but to rely heavily on generators, however, offsetting these expenses is possible by switching to solar power. Recently developed solar technologies now have greater longevity and relative affordability
Consider cutting on travel
The Nigerian Bureau Of Statistics has determined that transport expenses make up approximately 64 percent of a Nigerian's yearly earnings.It's clear that there will be an uptick in these numbers in the near future, therefore it is advisable to restrict traveling to only essential reasons and limit lengthy journeys for mandatory purposes.
Consider stocking on essential commodities
The prices of commodities are known to sometimes experience sudden spikes, so it's best to avoid panicking and scooping up large quantities of products but keeping some extra essentials on hand is reasonable. It's always better to take precautions and avoid regrets.
Posted Using LeoFinance Alpha