The truth is that “fuel subsidy is gone,” despite the validity of any arguments in favour or against it.
The price of gasoline would undoubtedly increase and continue to increase because the government will no longer pay for a portion of the expenses related to providing it to Nigerians.
President Bola Ahmed Tinubu has reaffirmed that there is no provision for fuel subsidy in the 2023 budget; as a result, beginning in June, Nigerians have been required to pay the full cost of the fuel they use.
On May 29, rumours began to circulate that petrol lines had returned and PMS was being sold for as much as N500 per litre. The Nigerian National Petroleum Company (NNPC) Limited announced the change in gasoline pricing on May 31.
It goes without saying that the subsidy elimination would hurt initially. But most Nigerians concur that it must be removed. It is also crucial to note that, when compared to price ranges in other African nations, the new price ranges (between N488 per litre and N537 per litre) are not that ridiculous.
For instance, PMS costs N1,200 per litre in Ghana. The price of PMS is N764 per litre in Togo and N752 in Senegal.
The Dangote refinery has already started operating, though, and competitive pricing may cause the price to fall a little bit.
The following are some suggestions on how to get ready to adjust to the current reality of fuel price increases.
Reduce your fuel usage.
Unfortunately, if you continue to use the same amount of fuel, you will find yourself spending more than your existing budget. This is the time to use fewer automobiles and fewer generators. Long-term, you’ll save a ton of money by doing this.
Think about going solar.
Since there is still no so much potential for improvement in the electricity supply for the country, you might find yourself using generators a lot. By converting to solar power, you can reduce these costs. Modern solar technologies are more durable and substantially less expensive.
Reduce your travel.
The Nigerian Bureau of Statistics (NBS) estimates that 6.4% of Nigerians’ annual income is spent on transportation. It goes without saying that these figures will increase in the upcoming months. Travel as little as possible, and only embark on lengthy journeys when absolutely required.
Store up on necessities
A brief increase in the cost of commodities wouldn’t be out of the usual. Even if it is not a good idea to stock up in a panic, you might think about keeping a buffer of these necessities. Always err on the side of caution.