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Strike Cannot But Low Oil Price Has Changed Basis For Subsidy

Feature Article Strike Cannot But Low Oil Price Has Changed Basis For Subsidy
MAY 20, 2016 LISTEN

Going on strike because of jumbo politicians’ remunerations without basis make sense; not for increase in the price of petrol right now. Those waiting on the queue to buy petrol for days and nights at local petrol stations paid much more than the price increase. They would rather spend that time judiciously and buy at the present price. The problem is, they do not know how long the present price increase would last or if the palliative measures promised would be adequate.

The first question we must ask is where does the money to subsidize premium motor spirit PMS comes from? Owo ti kosi, jedijedi ko le gba. If we do not make enough money from crude oil, you cannot subsidize as you used to. It may sound easy, but we all know it is more complicated. Those that see the country as an oil producer want some benefits from it. This by itself is not unreasonable and people are tired of excuses given from one government to another.

It is hard to justify removal of subsidy while politicians still make outrageous salary as if the oil income has not changed, order new cars as if too much money still flows around and sit tight while indicted for corruption and abuse of process since the legal system can be compromised.

The people do have a right to question why low oil income has not affected administrators and politicians’ entitlements and what they contract to themselves. Me-myself-and-I spends more time thinking about how they can ruin their own country than how they can make it work for the people they serve. They know we are heading into chaos and they do not care whether oil income has decreased, their families must be taken care of where they hide their loot outside.

Most of the people that look at the cost of petroleum at the gas station know we have crude oil and we have refineries. The problem that has not been solved, in spite of promises, is that we do not refine enough to meet consumption inside the Country. We knew this as a fact for many years but the refineries remained under-utilized, lack maintenance and are becoming obsolete.

We have missed the opportunity to gain from free market advocated by many. The reasons are the mismanagement of subsidy by the rich in high places that want it to continue without adequate measures to make the country self-sufficient. Cronies turned temporary relief into permanent money making schemes. This could have resulted in very low price as world oil prices fell. They abused good intention of subsidy filling gaps till refineries were up to capacity.

When we look at world oil prices falling so low, people have a right to wonder why local petrol prices are going up. There was a time when world oil prices were high, politicians justified lower than world prices with subsidy. Now that world prices have fallen, local prices are still going up regardless. The little people are not stupid, contrary to what some experts think, they should question the mentality and suitability of our politician’s management of income and planning.

Each time every government promises that provisions will be made for them, they see nothing. Those that benefit most are buying at lower subsidized prices and sending petrol across the border to sell at higher profitable prices. The lower the price, the greater the incentive to ship across the border creating scarcity at home. So lower prices can never cure shortage at home, it only encourages scarcity. Better to avoid scarcity by export, than to scrabble for solutions.

It is nothing short of deliberate indifference for which saboteurs could be jailed for a long time, shot or watch their sacrifice dripping from the guillotine so that their families could learn. Indeed profiting from the misery of others has become a culture of the rich, the connected and famous without any guilt. Some of the antithetical cultures are even justified with a bold face as rightful share of their national cake. They justify anything politically and ethnically.

We want politicians with foresight that can plan for the Country future needs. Otherwise we should not be talking about more refineries to be built and money needed to maintain the ones we have running at full capacity. Any reasonable country would have made provisions before it becomes unnecessarily difficulty. We have folks sabotaging a country to making sure nothing works so that alternative like generators and refined petrol can be imported.

Asking blindly for minimum wage increase is also short-sighted. States and local governments already have problem paying minimum wage right now. Indeed, the number of people gainfully employed by the Federal and other states with enough resources to pay salary as of and when due are limited to less than 25% if we count their families and their cumulative spending in the market. It creates inflation and poverty for more than 50% under-employed and jobless sectors.

Standard of living is not the same in every localities, apart from Federal workers, minimum wage must reflect the income each states can generate and not the resources in three or four other states. States cannot employ more workers than they need or can pay. It is better to have regular income than irregular unpaid income. Some states are only paying half of their salaries. Otherwise, we will continue to suffer each time the price of oil, cocoa or bauxite fluctuates.

Labor Union must come together and try to increase competition by establishing their own petrol stations where they can sell their local or imported oil at a discount. There is no reason the states cannot build their own refineries. The money Governors diverted from their local governments can build refineries and create mini power stations or better still alternate energy.

Nobody can trust anyone with a bulk of money anymore. The consequences for stealing is a few months or none in jail. So, only a fool would get into the government and not steal because the temptation is too great to resist when shoved in your face. As a result of indiscriminate sense between right and wrong, needs and wants, stealing and corruption. Instead of looking for ways to reduce or eliminate temptations, we fight to keep it in place in case it comes to our turn.

Proportionally, more premium motor spirit are consumed by some few rich people for personal luxury vehicles than consumed by the greater amount of people that need it for daily activities without personal cars. They range from small businesses, local traders to market folks. As use of diesel, kerosene, lubrications, heavy oil etc. affect them, many join the rich asking for lower petrol prices. Even when they benefit least. They go on petrol strike supporting the rich!

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