By Udeme Akpan, Obas Esiedesa, Olasunkanmi Akoni, Ediri Ejoh & Mariam Eko


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

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

On his inaugural speech yesterday, the new president, Bola Tinubu, had stated that “petroleum subsidy is gone”.

Checks by Vanguard 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 this reporter at one of the fuel stations selling petrol, lamented, “Why would Tinubu start on this note to punish the already depressed, impoverished Nigerians inflicted by the out-gone administration of President Muhammadu Buhari.

“This is absolutely unfair to Nigerians. When I heard that Tinubu has directed the removal of oil subsidy, I had to rush down here to fill my tank and some jerry cans for my power generating set.”

Also, 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 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.”


Fuel subsidy, cheap way of making money — OGSPAN

But National President, Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, who described fuel subsidy as a cheap way of making money, said: “We have heard that before. It is said that’s easier said than done. Anything that would remove cheap money can be resisted. Fuel subsidy is one of such cheap monies. I have read the speech it sounds nice. I cannot remember the last inaugural presidential speech that the promises and hopes were implemented the way it was spoken in the history of Nigeria. Let us wait and see.”

Tpave:
We're also contributing to the problems. This too shall pass

HacheNoire:
It’s a sacrifice we must all make. No going back!

The amount that has been siphoned through that program is enormous.

What should be on the table is the how funds will be channeled into programs and infrastructures that will cushion effect.

HacheNoire:
It’s a sacrifice we must all make. No going back!

The amount that has been siphoned through that program is enormous.

What should be on the table is the how funds will be channeled into programs and infrastructures that will cushion effect.

BlackAdams007:
There's no sense in removing fuel subsidy, it can't help i thought he would be wise but it's obvious.

HacheNoire:
It’s a sacrifice we must all make. No going back!

The amount that has been siphoned through that program is enormous.

What should be on the table is the how funds will be channeled into programs and infrastructures that will cushion effect.

LikeAking:


Abeg talk with sense.

Refineries should be repaired and 100 working before fuel subsidy will be removed..

Secondly how will buy fuel at 350 help you?

It will make life miserable for you..

HacheNoire:



Even if all refinery are repaired, fuel will still be selling at close to international market prices. It won’t reduce price to current selling rate.

Subsidy has been doing all that and it’s time to let go.

Psady:
Any policy meant for the good of the masses is a welcome idea, if we like let's keep suffering ourselves by inflating the prices of goods and commodities for our selfish interest.This new government is here to work,before a new elected official will implement a policy on assumption of office,it's crystal clear he has a clear study of the good impacts on the nation.lets not be confused by these naysayers,they will keep painting it so bad to undermean this new government but we know their plan, their wailing has only been geared up .
President Tinubu is here to serve us all,and we will see the good results in no later .

LikeAking:


It doesn't work that way...

Check other oil producing countries fuel prices, it's very cheap..

Very, very cheap..

Oil producing countries have cheaper prices for their citizens.

No allow sentiment here, it involves your own future.

HacheNoire:


Price per liter in Saudi Arabia is $0.62/liter. Are we paying that much in Nigeria? That’s what subsidy has been cushioning.

It’s time we step up!

HacheNoire:


Price per liter in Saudi Arabia is $0.62/liter. Are we paying that much in Nigeria? That’s what subsidy has been cushioning.

It’s time we step up!

GoodofNaija:


Is your living standard and minimum wage same as Saudi Arabia!

Try dey use your sense!

LikeAking:


Funny man.

Dollar value in Saudi and Nigeria is not the same.

Guy let's be critical white government polices..

Don't let these old men device you.

HacheNoire:



The USD is world exchange currency and my calculations are valid. Saudi trades with the USD.

LikeAking:


Stop saying this, pls..

USD ex in Kenya is diff from Naija..

HacheNoire:


I thought you said fuel was cheaper in oil producing countries and I gave you an instance?

What point are you proving now? When boxed to the wall, you result to insult.


Hello, Nigerians are underpaying for fuel as a result of subsidy which must stop!

2mercy:
•Depot owners shut down operations

•Transporters hike fares, commuters grumble

•Stakeholders support subsidy removal




https://www.vanguardngr.com/2023/05/petrol-price-jumps-to-n350-ltr-as-queues-return/


Nlfpmod

eliyke:
Refinery wey Neva ready wey buhari run go commission,my brother wey dey wrk Dere say,e no sure say dat thing go even wrk dis year

HacheNoire:



Even if all refinery’s are repaired, fuel will still be selling at close to international market prices. It won’t reduce price to current selling rate.

Subsidy has been doing all that and it’s time to let go.