The argument on whether or not to remove the subsidy has been ongoing for a long time as the price of crude oil in the international market continues its downward plummet.
Hard times loom for Nigerians as the Federal Government has yielded to pressure to remove the subsidy on fuel next year.
This is coming as crude oil prices hit a seven-year low with the international prices marked at $34.7 and $36.7 per barrel, as opposed to the $38 per barrel mark Nigeria calculated for the 2016 budget.
The crash of the price means that about N1.45 trillion would be lost in value of the projected oil output in the international market based on production target increased in the 2016 plan to 2.2 million barrel per day (mbpd), up from actual 1.9 mbpd in 2015.
Also, the drastic fall of the naira against the dollar would also tell negatively on the revenue expected from the projected output of oil.
At N198/$1 the value of projected total budgeted oil output is $35.14 billion or N6.95 trillion but with the incessant fall of the naira against the dollar, the output would now yield $27.8 billion or N5.5 trillion.
The pump price of fuel would be expected to shoot up to about N97 and beyond.
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