In a swift turn of events less than 24 hours after President Bola Tinubu assumed office as Nigeria’s 16th President, the price of premium motor spirit (PMS), commonly known as petrol, skyrocketed to N300 and N350 per litre. Following President Tinubu’s announcement of the complete removal of petrol subsidy, fuel queues reappeared at major petrol stations across the country, particularly in Lagos and Abuja.
President Tinubu, in his inaugural speech, unequivocally stated, “petroleum subsidy is gone.” As a result of the sharp increase in pump prices, commercial transporters promptly raised their fares nationwide in response to the developments.
Notably, in Enugu State, several filling stations closed down, while the few remaining ones adjusted their meters from the previous N220 to N300 per litre last night. In certain rural areas, the pump price soared from N280 to N350 or even N360 per litre. Concerned citizens expressed their desire for the government to ensure an adequate fuel supply, particularly during times when there are power outages or enforced stay-at-home orders.
Meanwhile, some fuel stations, like Nowas filling station, have not changed their prices and continue to sell petrol at N240 per litre. However, it is anticipated that changes may occur soon. Additionally, according to a report by Vanguard, some marketers in Lagos have increased their prices by approximately 100 percent, reaching N370 per litre from the previous N185 per litre.
Other stations, especially major marketers, sold petrol between N195 and N220 per litre across Lagos and Abuja. Consequently, queues reemerged at filling stations, and some operators opted to close their stations. Depot owners also joined the frenzy and suspended their operations, citing the need for further clarification on the implementation of the new policy.
The consequence of these developments is evident in the stranded commuters at various bus stops, eagerly waiting to board commercial buses that may be affected by the petrol subsidy removal turmoil. As a result, some buses already on the road have increased their fares by 50 to 100 percent, fearing an impending scarcity.
One tricycle rider expressed his frustration, stating, “Why would Tinubu start on this note to punish the already depressed, impoverished Nigerians inflicted by the outgone administration of President Muhammadu Buhari? This is absolutely unfair to Nigerians.” Similarly, a motorist in the Agege area voiced concerns about the queues, expressing hope that this unfortunate situation would not prolong and subject the suffering masses to further economic and mental distress.
The situation is expected to worsen in the coming days as workers and business owners return to work after the holiday declared for the inauguration of the new president.
Nevertheless, most stakeholders believe that the subsidy removal was a necessary step. Adetunji Oyebanji, the immediate past chairman of the Major Oil Marketers Association of Nigeria (MOMAN) and Managing Director of 11PLC, stated, “This is a welcome development. The country is bleeding every day, and we are getting to a stage where if we are not careful, all our revenue will be going into world-serving debt and going into the subsidy, which means we have no money left to do any other thing to pay salaries.”
While some individuals expressed their support for the removal of fuel subsidies, claiming that they primarily benefit the elite who have vehicles, he stated that the poor masses would suffer more.