What does fuel subsidy mean?
Fuel subsidy means that a fraction of the price that consumers are supposed to pay to enjoy the use of petroleum products is paid by government so as to ease the price burden.
What do we mean by subsidy?
A subsidy is a benefit given to an individual, business, or institution, usually by the government. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.
What are economic subsidies?
Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product. Description: The objective of subsidy is to bolster the welfare of the society. Subvention refers to a grant of money in aid or support, mostly by the government.
What is a journalistic information subsidy?
An information subsidy is the provision of ready-to-use newsworthy information to the news media by various sources interested in gaining access to media time and space. Typical forms of information subsidies include press releases, as well as press seminars and conferences.
What is purpose of fuel subsidy?
Fuel subsidies often benefit political and business elites and are also hugely popular among many citizens (of developed and developing countries alike) who benefit from the availability of cheap energy for transportation, cooking, air-conditioning, heat, and other key functions.
What is fuel subsidy in Nigeria?
Fuel subsidies in Nigeria are enormous. Subsidies exist because the government fixes the price of gasoline for consumers below the international price and uses government resources to pay for the difference. They were first introduced in Nigeria in the 1970s as a response to the oil price shock in 1973.
What is government subsidy?
Government subsidies are financial grants extended by the government to private institutions or other public entities, in order to stimulate economic activity or promote activities that are in the public good.
Is subsidies good or bad?
Subsidies create spillover effects in other economic sectors and industries. A subsidized product sold in the world market lowers the price of the good in other countries. While subsidies may provide immediate benefits to an industry, in the long-run they may prove to have unethical, negative effects.
What are consumer subsidies?
(1) Welfare payments or consumer subsidies are the subsidies the government pays to the fraction of people who are unemployed, poor, or ill.
What is a subsidy example?
Examples of Subsidies. Subsidies are a payment from government to private entities, usually to ensure firms stay in business and protect jobs. Examples include agriculture, electric cars, green energy, oil and gas, green energy, transport, and welfare payments.
What is a press release?
A press release is a communication, announcing a story to the public which is deliberately sent to journalists or media publishers in the hope they will publish the news contained in them. Press releases are usually written by press officers working in the communications or public relations (PR) industry.