Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. - Politics - Nairaland
Nairaland Forum › Nairaland General › Politics › Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. (292 Views)
| Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by worksmart(op): 4:05pm On Jun 14, 2023 |
Let us look at what is meant by the concept of fuel subsidy . Subsidy means charging for a price lower than the cost of your product and the subsidy is the difference between the true price and the subsidized price you choose to charge. In Nigeria's case we can work out our price of litre fuel as follows: Cost of extraction of oil from our land Cost of transportation of oil to refineries cost of transport of fuel from refineries to filling stations Other related overheads . This can be calculated, let us assume the price for Nigeria to deliver fuel to filling stations is something like $0.40 per litre for fuel which is about N170 / litre. The fraud is that is that if instead of charging Nigerians the cost of production and delivery of fuel, they are claiming that Nigeria is subsidizing the price of fuel if we do not pay the price that a non oil producer nation would import fuel for. So let us assume the price of non oil producer without refining capacity of importing fuel is $0.70 (N350), the subsidy proponents are then saying we are subsidizing fuel by charging the $0.40 it cost us to land fuel at filling stations. So that is the fraud . |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by Zxcvbnmghtr: 4:06pm On Jun 14, 2023 |
worksmart:  |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by worksmart(op): 4:16pm On Jun 14, 2023 |
We could raise the price of fuel above it's true price and to N350 but let us use the extra revenue as income that goes into the coffers of our treasury to be used for development of the country included repairing and building refineries. By calling this additional income subsidy removal the corrupt government is presenting it as money that they have chosen not to pay out instead of presenting it as additional income that they earn, that way it is easy to not account for it and misappropriate it. Let us actually acknowledge that we are imposing a fuel tax on the people of N180 per litre in the example have have given. That way we can be accountable for how we utilize the extra revenue realised. worksmart: |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by OldBeer: 4:20pm On Jun 14, 2023 |
No vex, I no read because we don pass this level. |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by worksmart(op): 4:36pm On Jun 14, 2023 |
Not your fault na, we have been deceived so much by corrupt politicians that we can no longer recognize the truth. Abacha who we castigate for being a looter was able to set up the Petroleum Trust Fund that positively impacted infrastructure and other national developments simply by raising the price of fuel from N13 ($0.26) to N18 /litre ($0.36/litre) and guess what? He never called it subsidy removal. Subsidy is deceptive concept for looting politicians. Remember, Google is your friend! OldBeer: |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by worksmart(op): 1:16pm On Jun 15, 2023 |
Where are have all the proponents of this fuel "subsidy" deception? They are avoiding this thread like malaria   |
| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by worksmart(op): 9:55am On Jun 16, 2023 |
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| Re: Why Subsidy Removal In Itself Is A Fraud, Concept Is Based On Deception. by StarRiderr: 10:41am On Jun 16, 2023 |
One thing I noticed of this tinubu's administration is they're prepared for gushing out lies and their internet bulldogs are always there to defend them 1 Like |
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