Senate President Godswill Akpabio has weighed in on the recent fuel price hike, attributing it to deregulation and assuring Nigerians that the Senate will intervene if necessary.
“It simply means that you are going to stop the idea of subsidy to make sure that the monies are used for other things. So I don’t expect any increase in pump price,” Akpabio stated after a plenary session, on Thursday.
Akpabio’s stance echoes the Federal Government’s reasoning behind the price increase, citing the need to allocate funds to other essential sectors.
However, this move has sparked widespread concern among Nigerians, who are already grappling with economic hardship.
The Senate President emphasized that market forces should dictate prices, and with the Dangote Refinery and other refineries coming online, prices may actually decrease.
“So, at the beginning, it may seem to be increasing, but I believe strongly that… we may not even see higher pump prices,” Akpabio said.
Read Also: NNPCL’s fuel price hike illegal, says Falana, cites PIA
This development is reminiscent of the 2016 fuel price hike, when the Senate backed the Federal Government’s decision to increase prices from N86.50 to N145 per liter, citing paucity of funds and corruption in the fuel subsidy regime.
Can Senate Intervention Mitigate Economic Hardship?
Senate intervention can potentially mitigate economic hardship, but its effectiveness depends on various factors.
Historically, the Nigerian Senate has shown support for fuel price hikes, such as in 2016, when they backed the Federal Government’s decision to increase prices from N86.50 to N145 per liter.
However, this decision was made with the understanding that the government would implement palliatives to alleviate the impact on ordinary Nigerians.
In theory, fiscal policy tools, including government spending and taxation, can influence the economy and provide relief during economic downturns.
The Senate’s intervention could involve pushing for targeted spending measures, tax cuts, or subsidies to support vulnerable populations.
Ultimately, the success of Senate intervention in mitigating economic hardship depends on careful consideration of these factors and a commitment to evidence-based policymaking.
Join the conversation
Opinions
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
Donate Now
