Fuel subsidy removal: Scarcity returns as marketers hike pump price

Following announcement by President Bola Tinubu that fuel subsidy has been removed, fuel marketers have increased the pump price of petrol to N305/ltr forcing many consumers into panic buying.

Our findings also showed that some of the petrol stations operators simply shut their filling stations, thus leading to the emergence of long queues.

Findings showed that some of the petrol stations operators simply shut their filling stations, thus leading to the emergence of long queues.

Investigation revealed that some marketers responded by increasing their prices by about 100 percent to N370 from N185 per litre.

Recall that in his inaugural speech on Monday May 29, the new president, Bola Tinubu, had stated that “petroleum subsidy is gone”.

Meanwhile, commuters were seen stranded at various bus stops waiting to board commercial buses which may have been trapped in the frenzy that greeted the petrol subsidy removal.

READ ALSO: Fuel subsidy is gone, says President Bola Ahmed Tinubu

Few of the buses that were on the road for business hiked the fares between 50 and 100 per cent over fear of impending scarcity.

Mr. John Akinloye, a motorist along the Agege area, said, “I was not surprised to see queues at the fuel stations after the announcement. I just pray this sad and unfortunate development will not last so as not to put suffering masses in another round of economic and mental torture.

“I have been at the fuel station for over an hour, and am yet to get to the fuel pump point. Even the fuel attendants are not willing to sell more than N3,000 per buyer. If you want to buy N4,000 they are refusing.”

At petrol stations operated by independent marketers, pump price was hiked to between N315 and N370 per litre with the topmost price range recorded in other parts of the country outside Lagos and Abuja.

READ ALSO: Again, fuel subsidy debacle and Nigeria’s future

The situation, it was gathered, might worsen in the coming days as workers and business owners return to work today after the holiday declared for the inauguration of the new president.

Immediate past chairman, Major Oil Marketers Association of Nigeria, MOMAN, who doubles as the Managing Director, 11PLC, Adetunji Oyebanji, said: “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.

Similarly, the Lead Promoter, EnergyHub Nigeria, Prof. Felix Amieyeofori, said: “This is a welcome development for the oil and gas industry. We support it because it is only benefiting the elites. Government should direct the subsidy to other strategic economic programmes. We cannot borrow to pay subsidies.”