Long Queues At Gas Stations, Rise In Fuel Prices After Subsidy Removal

Across the country, Nigerian gas stations witnessed long queues of drivers and increased petrol prices after President Bola Tinubu announced the decision to end the fuel subsidy.

On Tuesday, many gas stations in Lagos, Abuja, Ilorin, Benin, Asaba, Port Harcourt, Kano, Makurdi and other urban cities and areas had a long line-up of drivers. The prices also skyrocketed from N195 per liter to N600 per liter in several parts of Nigeria, Punch reported.

In fact, in some places, the situation became worse as many pumps were shut or refused motorists to provide fuel. This created panic buying as customers are trying to get fuel as much as possible in desperation.

The Nigerian National Petroleum Company (NNPC) Limited, which is a state oil firm, requested citizens to not "buy more than they need," ABCNews reported.

A Lagos resident named Gabriel Imoke told the outlet, "A trip of 20 minutes that I normally go for 400 naira (86 U.S. cents) is now 1,000 naira ($2.1)."

Senior vice president of energy and industrials at FBNQuest Merchant Bank, Uwadiae Osadiaye predicted that this panic buying can continue for weeks, noting that gasoline marketers might stock up on fuel in order to avoid loss.

"The subsidies are not affordable from a fiscal standpoint," he said, explaining that government should have removed the subsidy gradually rather than immediately scrapping it. "There would have to be an adjustment period and a change in consumption pattern, maybe in lifestyle for Nigerians."

Aside from Osadiaye, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also criticized President Tinubu's decision to go ahead with former President Muhammadu Buhari's plan to remove the fuel subsidy by the end of June.

IPMAN pointed out that the government should've held a discussion with the association before making such a decision, noting that they are not in support of the removal of the fuel subsidy.

"We have said it repeatedly that our refineries should be fixed before taking such a decision that will cause galloping inflation and inflict more hardship on the masses," IPMAN's Chief Ukadike Chinedu said.

Tinubu made the announcement of removing the subsidy shortly after he was sworn in as the 16th President of Nigeria.

"The fuel subsidy is gone!" he said. "Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We 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."