There had been much speculation about whether or not the fuel subsidy was going to be removed by the new administration. All doubts were put aside when President Bola Ahmed Tinubu, in his inaugural address, declared that “Fuel subsidy is gone!”. Predictably, this led to long queues resurfacing in filling stations across the country and a subsequent sharp increase in the retail price of Premium Motor Spirits (PMS) also known as petrol. Today under the new price regime, the pump price of PMS ranges from N488 to N577 per litre depending on the location you buy from. In this post, we look at the impact of the fuel subsidy removal and what to look out for when making a switch to solar to ease the burden of high fuel prices.
Simply put, a subsidy is a benefit given to an individual or business by the government. In this case, the price the government paid on the cost of petrol to make it cheaper was the benefit. You see, Nigerians previously had not paid the market price of petrol because the Government was subsidizing it. This kept the price of PMS artificially low while the burden on the government kept increasing as oil prices increased over the past couple of years. Under the new administration, the government has said it won’t continue to provide this benefit to the people and we are starting to see the effects of this subsidy removal.
With an increase of 150-200% in the cost of fuel, the immediate impact is that individuals and businesses now pay double or more for fueling their cars and powering their petrol generator sets to supplement poor grid energy. To reduce costs, hoards of people have been looking to invest in solar systems and we have been working to help make the switch as seamless as possible. Here are 3 key tips:
Do your research – With solar gaining popularity, there are so many products to choose from, each with its own pros and cons for a wide range of needs. Know the brands being installed for you and the warranty periods of the solar panels, inverter & batteries installed and hold the brand to these standards.
Determine your energy usage priorities – The more you want to power, the larger your solar solution will be, and the more you’ll pay for it. Is it a necessity to power heavy-duty appliances, like ACs, with solar or can they be utilised when you have power from the grid? You may decide to start with a smaller inverter to power your essential, low-wattage appliances, then size up later. These are decisions you need to consider.
Consult professionals – Solar is not a one-size-fits-all. Make sure you consult accredited solar energy professionals to size and install a system for you to avoid “stories that touch”. One we can vouch for is Uwana Energy! 🙂
Uwana Connect helps you with all three. You can carry out your virtual energy audit (load assessment) in minutes to assess your load, select priorities, access financing, and be connected to quality products and quality installers. We work with the best energy professionals to deliver an installation and ensure we guide you each step of the way. Try it out today!