Atiku’s economic perspective on fuel price increase – For Vice president of Nigeria Atiku Abubakar has reacted to the recent increase in pump price of petroleum products in the country.
Financial Watch reports that President Muhammadu Buhari has explained that “As you all know, when oil prices collapsed at the height of the global lock-down, we deregulated the price of premium motor spirit, PMS, such that the benefit of lower prices was passed to consumers.
“This was welcome by all and sundry. The effect of regulation though is that PMS prices will change with changes in global oil prices. This means, quite regrettably, that as oil prices recover, we would see some increases in PMS prices.”
Reacting to the increase however, Atiku disagreed with the president; “I am a businessman. I look at things from an economic perspective. Questions beg answers. The price of crude is down from where it was in 2019. In the US and Europe, fuel prices are far lower than they were in 2019. If we truly deregulated, shouldn’t fuel price have dropped?” he said in a tweet Tuesday morning.
Further Justifying the increase in electricity tariff, Buhari said: “The other painful adjustment that we have had to make in recent days is a review of the electricity tariff regime.
Read also: Electricity bill to increase for Nigerians from July
“If there is one thing we have heard over and over again, it is that Nigerians want consistent and reliable power supply. So the power sector remains a critical priority for the administration.
“Protecting the poor and vulnerable, while ensuring improved service in the power sector, is also a major priority for government. And our policies, like the social investment programmes and other socio-economic schemes to benefit Nigerians, show that we remain focused on improving the welfare of the common man.
“The recent service-based tariff adjustment by the DISCOs has been a source of concern for many of us. Let me say frankly that like many Nigerians, I have been very unhappy about the quality of service given by the DISCOs.
“That is why we have directed that tariff adjustments be made only on the basis of guaranteed improvement in service. Under this new arrangement, only customers who are guaranteed a minimum of 12 hours of power and above can have their tariffs adjusted.
“Those who get less than 12 hours of supply (B and D and E Customers) will not see any tariff adjustment. The poor and under-privileged who were on R1 lifeline tariffs in the old structure will be maintained on lifeline tariffs, meaning that they will experience no increase.
“Government has also taken notice of the complaints about arbitrary estimated billing. Accordingly, a mass metering programme is being undertaken to provide metres for over five million Nigerians, largely driven by preferred procurement from local manufacturers, creating thousands of jobs in the process.
“NERC has also been instructed to strictly enforce the capping regulation which will ensure that unmetred customers are not charged beyond the metred customers in their neighbourhood.
“In addressing the power problems, we must not forget that most Nigerians are not even connected to electricity at all. So, as part of the Economic Sustainability Plan, we are providing solar home systems to five million Nigerian households (impacting up to 25 million individual Nigerians) in the next 12 months.
