Petrol prices have reached all-time highs since President Bola Tinubu announced on Monday, during his inauguration speech, that his government will make no provisions for fuel subsidy in its budget.
In economic hubs like Lagos and Abuja, fuel has begun selling for N600 per litre. Due to the widespread scarcity throughout the nation, the majority of consumers have been forced to pay black market rates of up to N1000 per litre for the product.
Transportation fares have also reflected this increase and have nearly doubled in several regions of the country.
Many Nigerians are wondering why fuel has sharply become very scarce and expensive on barely two days after the new President, Bola Tinubu, consented to the planned removal of subsidy by the Buhari government.
Previous discussions about the fuel subsidy confirm that the federal government budgeted for the subsidy through the first half of 2023.
“In 2022, we are carrying the cost of subsidy throughout the whole year,” Buhari’s government Finance Minister, Zainab Ahmed said last August.
“But we suggested [for 2023] to the Federal Executive Council, and the council approved that, maybe we could look at the option of exiting the subsidy (regime) half year,” she added.
Despite some claims that the recent turn of events was a plot to artificially drive up fuel prices, the Nigerian National Petroleum Company Limited, NNPCL, has today announced a new pump price for petrol between N488 and N557 for each state in the federation.
The National Assembly has likewise backed the federal government’s outright removal of the subsidy.
However, a number of industry players have sounded negative reactions to the subsidy development.
The National Labour Congress has described the Nigerian government as “incompetent” for letting the subsidy deteriorate to its current situation.
“You say subsidy is gone, you don’t care how it affects people and who are we even saving money for?” Association’s President Ajaero told Channels Television on Wednesday.
Furthermore, the Independent Marketers Association of Nigeria has openly criticised the president’s handling of the subsidy removal, claiming it was the wrong move at the time.
“We have said it repeatedly that our refineries should be fixed before taking such decision that will cause galloping inflation and inflict more hardship on the masses,” said Ukadike Chinedu, the association’s spokesperson.
“The government of President Tinubu should not adopt what is in the transition document handed over to it by the administration of former President Muhammadu Buhari. Someone who for eight years did not remove subsidy is advising a new government to remove it.”
