Subsidy remark: Petrol stations hike prices as scarcity returns after inauguration speech of Nigeria’s president

President Bola Tinubu’s announcement regarding the removal of fuel subsidy in Nigeria, has resulted in many petrol filling stations across the country shut down their operations, leading to long queues at the remaining stations.

Tinubu firmly declared on Monday that “The fuel subsidy is gone.”

Immediately, Retail stations major cities increased the prices of petrol, causing surprise among motorists and the general population.

In Warri, Delta State, retailers such as Rain Oil and Shafa petrol station shut down their operations immediately after the announcement, leaving customers stranded.

A similar scenario unfolded in Lagos, where some NNPC stations witnessed long queues as motorists rushed to buy petrol following the news.

President Tinubu stated during his inaugural speech that there would no longer be a provision for fuel subsidy, as he believed it could no longer be justified.

He expressed his intention to redirect the funds previously allocated to fuel subsidy towards investments in public infrastructure, education, healthcare, and job creation to improve the lives of Nigerians.

The announcement led to queues and chaos in various cities, including Abuja, which had just started to experience some relief after a year of inconsistent petroleum product supply. Some petrol stations were dispensing fuel, but long queues formed, and people even resorted to buying petrol in jerry cans.

However, the lack of clarity in the announcement regarding the timing of the subsidy removal has caused further confusion. This ambiguity has given oil marketers the opportunity to hoard petrol and monitor the market situation before making any decisions.

It remains uncertain how the Organized Labour, which has consistently opposed the removal of subsidy without local refining of petroleum products, will respond to these developments in the coming days.

Additionally, the upcoming Dangote refinery, expected to start production in July, may improve the supply of petrol, although experts suggest that it may not significantly reduce the price of the product.