ENUGU, Nigeria (VOICE OF NAIJA)- Fuel Marketers and operators have increased petrol pump price in a quick reaction to the confirmation of fuel subsidy removal by President Bola Ahmed Tinubu.
President Tinubu, in his inauguration speech on Monday, said since the immediate past President, Muhammadu Buhari, did not budget for fuel subsidies in the second half of the year, the payment is gone for good.
Following this pronouncement, on Monday evening around the Nation’s capital and other states across the nation, it was noticed that long queues have returned as residents buy fuel between N210 – N1, 200/per litre against N195/per litre.
However, it was gathered that some filling stations in Kubwa expressway, Lugbe, still sell fuel at N195/per litre.
In Lagos, the sharp increase in fuel pump price is almost 100 per cent as residents purchase the product for N370/per litre from 180/per litre.
In Warri, Delta state, the pump price had jumped to N500/per Litre, while in Niger state, the fuel pump prices had increased to N210 -N300/per litre.
In Enugu State, the price of fuel increased to N550 from N220.
A resident of Aba, Abia State, told voiceofnaija.ng in a phone interview that the fuel price has jumped to N500 – N600, as against N220 – N230.
According to him, the price change resulted from President Tinubu’s pronouncement of subsidy removal on Monday.
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Also, in Abakaliki Ebonyi State, the petrol price rose to N1,200 Per Litre, against N230.
Many residents of the state have decried the high cost of petrol in the country, saying that they have since been engaged in panic buying.
Also, some residents were seen with their cans as many filling stations were under lock.
A resident, Darlington Okeke, said that President Tinubu’s statement occasioned panic buying during his inauguration on Monday.
Okeke stated that petrol in filling stations was sold between N800 and N1,200, against N230 per litre.
Another resident, Ibrahim Ali, lamented that black marketers sold a litre of fuel for N1,500.
Ali added that the development was causing panic buying and frustration among residents.
He, however, appealed to the President to address the situation to stop panic buying and arbitrary hoarding of the products, which marketers introduced after the announcement by the president.
Voiceofnaija.ng had reported that some staff of some filling stations, who spoke under condition of anonymity, said that the management of the Petroleum Dealers Association, Ebonyi State chapter, ordered the closure of fuel stations.
These price changes happened less than six hours after Tinubu’s announcement during his inauguration speech at Eagle Square, Abuja.
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Buhari had budgeted for fuel subsidies till the end of June. It implies that most fuel products available are still enjoying the subsidies regime.
Speaking on Tinubu’s decision to remove fuel subsidy and the operators’ reaction to the development, the Group Chief Executive Officer of Nigerian National Petroleum Corporation, Mele Kyari, on Monday, said he backed the President.
Kyari further assured Nigerians that there is no need for panic buying.
He noted that the company had enough product to supply the country for the next 30 days and was monitoring its supply and distribution networks around the country.
Taiwo Oyedele, the Fiscal Policy Partner and Africa Tax Leader at PwC had earlier advised the President to put content into his position on fuel subsidy removal.
He also said the President should ensure the fuel supply is sufficiently available for Nigerians in order to curb panic buying.
In a statement also, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) urged President Tinubu to apply caution in its decision on fuel subsidy removal.
The President and the General Secretary of NUPENG, Prince Williams Akporeha and Afolabi Olawale, respectively, said the new administration must take its time to end fuel subsidies.
“Any major policy decision on the removal of the subsidy on this essential economic item should be taken with extra caution given the enormous implications and the impacts on the overall economic activities of the nation and other unintended consequences on the ordinary citizens considering the socio-economic importance of the product,” they said.