Petrol queues, panic buying resurface after Tinubu’s fuel subsidy removal statement

By Onome Amuge

President Bola Tinubu’s recent declaration to put an end to the fuel subsidy  era has resulted in fuel queues and increase in fuel prices across some Nigerian cities, particularly Lagos and Abuja, the commercial and federal capital centres of the country, respectively.

The  16th president of Nigeria, in his inauguration speech stated that fuel subsidy can no longer justify its ever-increasing costs in the wake of drying resources.

To this end, he pledged that his administration, shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.

Barely a few hours after the president’s announcement, vehicle queues had resurfaced across  petrol stations as motorists and other petrol consumers struggled to purchase the product.

This has been  attributed to panic buying as there had been no report of fuel scarcity prior to the development. Business A.M gathered that some petrol stations have started selling for as high as N300 per litre and there are indications that the cost of petrol could soon rise above N500 per litre, should the rush persist.

Reacting to the president’s statement on fuel subsidy, Farouk Ahmed, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),  said that President Tinubu is right to remove the fuel subsidy because the past administration had already made moves toward the removal.

“The pronouncement by Mr. President is in line with the provisions of the law. For NNPCL to survive the action needs to be taken as quickly as possible,” he said.

Ahmed, therefore, called on the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Oil Marketers Association of Nigeria (MOMAN), and the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), to avoid hoarding and keep their fuel stations open.

He also advised petrol consumers, especially motorists, to keep calm and avoid panic buying as the law has taken its course, but assured that as regulators, the NMDPRA will ensure that the consumers are not taken advantage of.

Ahmed further stated that the association would engage with the  Nigeria National Petroleum Company Limited (NNPCL), to ensure there is a continuous flow of petroleum products, to prevent any shortfall in the country.

On its part, the NNPCL has welcomed the decision of the new administration to cancel petrol subsidy payments.

Mele Kyari, group chief executive officer (GCEO) of NNPCL, in a press statement, explained that the cost of subsidy has been a huge burden on the continued operations of the national oil company.

“We have been funding the subsidy from the cash flow of the NNPC since government is unable to defray the costs of subsidy that is due to the cooperation and we believe that this will free resources for the NNPC to continue to do the great work that this company will do for our country, and it allows us to continue to function as a very commercial entity that will work on this development,” Kyari noted.

Kyari  noted that there is sufficient supply of petroleum products, particularly petrol in the country and there is no reason to panic.He  also assured that the company is watching all the distribution networks and support facilities.

However, the Independent Petroleum Marketers Association of Nigeria (IPMAN),  has voiced its opposition to  the new government’s subsidy removal plan, saying such a decision  will cause galloping inflation and inflict more hardship on the masses.

According to Ukadike Chinedu, the national public relations officer,IPMAN, the association is not in support of the removal of fuel subsidy at this time, and has  repeatedly clamoured for the  refineries to be fixed before such action could be implemented.

He added that the government  needs to dialogue with marketers before taking the decision to remove fuel subsidy.

“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 (Buhari) who for eight years did not remove subsidy is advising a new government to remove it.

“That is not fair and should not be adopted. Rather the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” the IPMAN public relations officer said.

He further stated that IPMAN was ready to work with the new government and would proffer measures to address the fuel  subsidy regime, instead of effecting an outright halt in subsidy.