Nigeria_ subsidy removal and fuel price increase by imf price modulation – allafrica. com

Nigerian President Muhammadu Buhari, along with Vice President Yemi Osinbajo greeting IMF Managing Director Christine Lagarde By Izielen Agbon

THE new fuel subsidy removal or fuel price increase by price modulation is an updated (International Monetary Fund (IMF) strategy aimed at imposing fuel price deregulation on the Nigerian masses.

The strategy called for using the present low price regime to remove fuel subsidy and deregulate fuel prices. Electricity voltage used in usa It recommended an automatic price change mechanism that changes price slowly.

Price modulation means that government will ensure initial slow price increases by regulating the components of fuel price, such as taxes, freight, margins, transport, storage and bridging.

The slow fuel price increase will reduce immediate mobilisation and opposition. Tropico 5 power plant There will be no direct government regulation of fuel prices. La gasolina in english Rather, the marketers and traders will fix the final fuel price.

Price modulation fixes the bottom commodity price in a market by tweaking price components. Z gastroenterol Petroleum Products Pricing and Regulatory Agency (PPPRA) will fix the minimum fuel price and the fuel cabal/marketers can sell at whatever price the customer will pay.

The Nigerian fuel market is a corrupt oligopoly. Gas gangrene The increase in fuel prices will have oligopolistic limits. C gastronomie mariage Price modulation ignores corrupt practices and allows the fuel cabal to pass the cost of corruption to the masses.

In several meetings held in Abuja and Lagos between December 1 and 5, 2014, IMF staff members explained the updated strategy to Federal Government officials (IMF Country Report No. Z gas el salvador empleos 15/84, Nigeria 2014 Article IV Consultation- Staff Report, Press Release and Statement by the Executive Director of Nigeria, February 2015).

The report of these meetings stated: “Lower oil prices provide an opportunity to phase out fuel subsidies. Gas finder mn The recent drop in crude oil prices (and lower petrol and kerosene prices) could facilitate the completion of the subsidy reform, which started in 2012.

“Staff recommends introducing an independent price-setting mechanism to smoothly pass through international price changes to domestic prices and gradually eliminate fuel subsidies… Gas bubble in chest and back .”

The report indicated that the federal government accepted the updated strategy. Electricity 2014 The authorities’ authorities expressed their commitment to subsidy reform and indicated they were considering options, timing and modalities of implementing these reforms in light of the decline in oil prices.”

Speaking at the 10th memorial anniversary of Bala Usman in December last year, Alhaji Bola Ahmed Tinubu, a national leader of APC, stated: “In a perfect world, I wish we could sanitise the subsidy regime and thus continue it.

“However, I have reached the conclusion that there are too many demons in the system for this hell to be converted into good earth, let alone heaven… 1 unit electricity cost in andhra pradesh .

“Let us begin a process of a thoughtful, but decisive subsidy phase-out. Electricity images cartoon While this is occurring, we should simultaneously phase in social programmes benefiting the poorest, most vulnerable among us.

“Programmes, such as transportation subsidies, school feeding, improved basic medical care and coverage for the poor and potable water projects are some of the things that can be done with the funds.”

This sounds like the former Finance minister, Dr. Electricity cost calculator Ngozi Okonjo-Iweala, promoting the IMF fuel price deregulation and SURE-P programmes policy in December 2011. 2015 electricity prices The similarity is because both efforts are rooted in the IMF policy of fuel price deregulation/fuel subsidy removal.

In 2013, the IMF reviewed the lessons from the 2012 struggles against fuel price deregulation in Nigeria (IMF: Energy Subsidy Reform: Lessons and Implication, January 2013).

The report outlined six key elements for a successful fuel subsidy removal. Electricity multiple choice questions grade 9 On subsidy phase-in and social programmes, the report stated: “Appropriately phased and sequenced price increases… Electricity for beginners Phasing-in price increases and sequencing them differently across energy products may be desirable. Gas stoichiometry problems Pace and timing of energy price increases. Electricity physics khan academy Too sharp an increase in energy prices can generate intense opposition to reforms, as happened with fuel subsidy reforms in Mauritania in 2008 and Nigeria in 2012.

On December 27, last year, the PPPRA PMS pricing template put the expected open market price (OMP) at N93.45 a litre for a “fuel subsidy” of N5.45/litre.

The template starts with the C+F or product cost. Gas house eggs This is the monthly moving average cost of PMS for North West Europe (NWE). Electricity projects for grade 7 Thus, the foundation of the PPPRA PMS price is determined by a foreign firm/market.

Labour is a commodity, like crude oil, PMS, diesel and kerosene. Gas nozzle stuck in car Using the PPPRA template as a model, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) can develop a wage template based on a European monthly moving wage average (national minimum wage of 6.70 Pound Sterling per hour or N314096 per month) as quoted by HMRC (Her Majesty Revenue and Customs) in London.

The template can start with this European national minimum wage as C+F or labour cost. World j gastrointestinal oncol impact factor Future national minimum wage negotiation could use such an import-parity wage template.

Platts Oil is interested in providing information for profit and not in the development of Nigeria. 3 gases in the atmosphere In September last year, Platts lunched two new assessments specifically to determine prices of PMS import from Rotterdam (NWE) to West Africa.

Platts stated: “West Africa is a significant producer of crude oil, yet due to pressures on its refinery system and increasing car ownership, the region remains a very large importer of refined products. Electricity for refrigeration heating and air conditioning answer key Of those products, gasoline is the most significant. V gashi kenga e zagrebit The region’s largest country, Nigeria, consumes more than 40 million liters of gasoline each day…

“Due to a surplus of refining capacity and specifically a surplus of gasoline production, Northwest Europe continues to provide the bulk of gasoline imports into West Africa.

“The new Platts CIF West Africa assessment is to be calculated as a freight net-forward from the FOB Northwest European assessment, using a basket of two Worldscale flat rates; Amsterdam-Lome and Amsterdam-Lagos.”