The International Monetary Fund (IMF) has urged the federal government to fully eliminate subsidies for fuel and electricity, highlighting that these financial supports are not only expensive but also ineffective in benefiting the populations most in need of assistance….CONTINUE READING
Although not explicitly mentioned, the underlying implication of removing these subsidies is a likely surge in the prices of electricity and fuel.
This is because current subsidized rates are thought to be significantly below the actual market prices. By phasing out these subsidies, the government would allow fuel and electricity prices to align more closely with their true market value, potentially leading to increased costs for consumers.
What the IMF is saying
The bank also acknowledged the reforms currently embarked on by the current administration such as fuel subsidy removal and the unification of the exchange rate.
