Nigerians were seen panic-buying fuel on the new president of Nigeria’s first full day in office after it was announced that a long-standing subsidy on petroleum products would be eliminated.
Bola Tinubu declared the subsidy “gone” in his first-day remarks but provided no timeline or other information about this significant policy change.
Tuesday, May 30, his team provided clarification, stating that he meant the end of June and that the panic buying is “needless” because the policy will not go into effect right away.
President Tinubu wants to relieve the strain on government finances, but eliminating the subsidy will raise the price of petrol and have an impact on other prices at a time when inflation is already high.
Numerous fuel stations increased their prices while others stopped selling completely in response to the statement made on Monday.
Nigeria’s state-owned oil company, which is the country’s sole source of petroleum imports, assured the populace that it has an adequate supply.
However, this did not stop people from buying in a panic because they were worried that the price of gasoline, which is supposed to be supplied at a regulated price of 185 naira per liter (£0.32, $0.40), would jump drastically.
Filling stations are reportedly already raising prices, in some cases by more than 200 percent.
A few private bus drivers, who are relied upon by many Nigerians to get around, have also had trouble refueling their automobiles. People have been stranded as a result at major bus stops in Lagos, the country’s largest city, and Abuja, the nation’s capital.
Nigeria has a wealth of oil, but it cannot refine enough crude to satisfy local demand; as a result, it imports petroleum products, which are then sold at a price set by the government.
However, the subsidy severely depletes public funds. It consumed 4.3trn naira ($9.3bn; £7.5bn) last year, and 3.36trn naira ($7.5bn) was budgeted for it in the first half of this year.
The funds will be used to improve public infrastructure and people’s quality of life, Mr. Tinubu said on Monday, adding that the situation could no longer be justified.
However, the subsidy has long been regarded by many Nigerians as one of the few advantages they enjoy from the government.
Former President Goodluck Jonathan had to change his policy after the most recent attempt to remove it in 2012 sparked widespread protests.
So far, a significant group of companies that sell petroleum products has publicly stated that it opposes President Tinubu’s plan. It advised starting a dialogue before making a decision by the new government.
Source-BBC
