On Subsidising Diesel Consumption

Ogho Okiti of BusinessDay has a nice analysis:

How about another $5 billion for subsidy?
Thanks to soaring crude oil prices, we are receiving significant amount of income from crude oil exports.
Never mind that the government and the economy would have been in so much trouble by now, underlined by significant short fall in projected production, but for the huge price increases in oil.

Thanks once again to soaring crude oil prices, and our inability to refine the oil we produce, we are paying increasing amount for petroleum products we import. In response, it has been suggested by the government that it is prepared to subsidise the price of diesel at the pump, in the same way that the prices of petroleum motor spirit (PMS) and kerosene are subsidised. The suggestion came from a recent statement credited to the Minister for State, Petroleum, Odein Ajumogobia, that the government is looking for ways of ameliorating the pace of increases in diesel price…. Read more.