FUEL SUBSIDY/DEREGULATION - MATTERS ARISING &WAY FORWARD
Deregulation of downstream sector of the oil industry (removal of fuel subsidy)is not really a bad policy, but we must get the implementation right to reduce/eliminate initial hardship on the populace.
This can be achieved through phased implimentation, this will ensure that there is no sudden hike in fuel price with its attendant economical and psychological effects on the people. It will also allow govt time to put in place measures that will cushion the effects subsidy removal on PMS.
It also build people confidence in the policy if they see some gains from partial deregulation, it will be easier to sell the idea of full deregulation to them
Another every important thing is that government needs to show transparency and carry the people along in their dealings.
The people will want to see increasing production from the existing refineries and evidence that new ones are coming up either by the govt or private investors.
The populace still wants to be sure that the proceeds from the removal of subsidy will be used for the good of the people.