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Fuel Scarcity Begins, As Petrol Pump Price Rises After Tinubu Subsidy Speech -

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News

Fuel Scarcity Begins, As Petrol Pump Price Rises After Tinubu Subsidy Speech

Fuel Scarcity Begins, As Petrol Pump Price Rises After Tinubu Subsidy Speech

– Experts Insist it’s best decision
– Depot owners shut down operations
– Transporters hike fares, commuters grumble
– Stakeholders support subsidy removal.

The downstream end of the Nigerian petroleum industry has gone into a frenzy with fuel scarcity looming as operators respond to the immediate removal of subsidy on petrol with a sharp hike in pump price just as consumers crowded petrol stations.

Commercial transporters have also hiked their trip fares across the country in response to the developments.

On his inaugural speech on Monday, the new president, Bola Tinubu, had stated that “petroleum subsidy is gone” as the outgoing administration made no provisions for such in the 2023 annual budget.

Checks in Lagos showed that some marketers responded by increasing their prices by about 100 percent to N370 from N185 per litre.

However, few other stations especially the major marketers, sold between N195 and N220 per litre across Lagos and Abuja.

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

This is even as depot owners shut their operations, arguing that further clarification was needed to guide activities on the implementation of the new order.

In Abuja, long queues re-emerged at petrol stations as motorists reacted to the removal of subsidy on petrol.

Transporters hike fares.

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

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.

One of the motorists, wearing a long face, who spoke with Vanguard reporter at one of the fuel stations selling petrol, lamented: “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 Conoil and Adova Petroleum stations located in Karu area of the nation’s capital, long queues were observed with stations selling at N195 per litre.

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.

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.

Meanwhile, most stakeholders who spoke to Vanguard on the development believed that the subsidy removal was a right step.

Fuel subsidy removal , long overdue — MD, 11 Plc

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.

“The people kicking against this interest will end up suffering even more. The amount of money spent on this subsidy has been documented in so many different foray, different places, people have talked about it over the years and to make matters worse a lot of it is going towards subsiding other companies in Africa, hence it has to go.”

Oyebanji, who noted that the fuel subsidy removal was long overdue, said: “I have been an advocate of the removal of fuel subsidy because it is not benefiting the ordinary man but rather the elite who drive cars. So, I was pleased with the planned removal.”

We cannot borrow to pay fuel subsidy — EnergyHub

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 subsidy.”

TheConscience

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