Understanding the Removal of Fuel Subsidy 1. Subsidies are great policy, but terrible when wrongly targeted. a. Our fuel subsidy system discriminates against the poor by helping those who actually dont need and dont deserve a subsidy. b. It encourages smuggling of fuel to countries in the region that have high fuel prices , and as you know fuel prices in the subregion are higher than in our country. 2. No more increases in transport fare for the rest of 2014. 3. Only 15% of the 23% increase resulting from the removal is passed on to those who use private commercial transporters. 4. Metro Mass retains existing transport fare to ensure the poor experience no change in transport fare. 5. School kids and the elderly will not pay for the use of metro mass for transportation. 6. More metro mass buses have been ordered to support mobility of the poor. 7. Removal of subsidies has freed up funds for education, health etc 8. On the back of the removal of subsidies, government was more confident to release about 370 to NHIS, DACF, GETFUND. 9. Interventions are ongoing through the distribution of gas cylinders and cooking stoves to ameliorate the plight of the poor and rural folks.
Posted on: Mon, 14 Jul 2014 16:49:50 +0000
Trending Topics
Recently Viewed Topics
© 2015