Yesterday, we wrote about the increase in fuel prices, why it is coming at this time, including its possible implications for fuel marketers, traders and everyone. We have also written about the hike in electricity prices and the reasons why electricity is being increased at this period. But still, the electricity and fuel price increase still keeps generating a lot of controversy all over the country.
As at this morning, there are reports that Senators are protesting the fuel price hike, stating that their constituents deem them “rubber stamp senators” by acceding to everything the Buhari government does, and that there could be an emergency sitting next week to review these twin prices in fuel and electricity. And while the Nigerian Labour Congress have stated the government is “taking us for a ride” and how there can’t be “industrial peace and harmony” with this directive, other political leaders have voiced support for the price increases, including Dapo Abiodun, the Governor of Ogun State. Atiku Abubakar and Kingsley Moghalu have also criticised and supported the increases respectively.
What Is Fuel Subsidy?
But what exactly is fuel subsidy, and why does it generate a lot of controversy?
Well, the origins of fuel subsidy are still lost in the pages of history.