Nigerian Downstream Petroleum Industry in Frenzy as Subsidy Removal Triggers Pump Price Hikes
The downstream Sector of the Nigerian Petroleum Industry has been sent into a state of frenzy as operators respond swiftly to the Immediate removal of subsidies on Petrol.
In a ripple effect, pump Prices have skyrocketed, leading to a surge of consumers rushing to Petrol Stations Nationwide.
Commercial transporters have also wasted no time in Increasing their trip fares across the country in response to these Developments.
During his Inaugural speech, President Bola Tinubu unequivocally stated, “Petroleum subsidy is gone.” In Lagos, Investigations by Kukuruku revealed that some marketers wasted no time in significantly raising their Prices by approximately 100 percent, jumping from N185 to N370 per liter.
However, a few other Stations, particularly major Marketers, opted for a more moderate Increase, selling Petrol between N195 and N220 per liter across Lagos and Abuja.
Shockingly, some Petrol Station operators chose to simply shut down their Filling Stations, causing long queues to form.
Furthermore, depot owners suspended their operations, arguing that further clarification was needed to guide their activities following the Implementation of the new order.
In Abuja, long queues resurfaced at Petrol Stations as Motorists reacted to the Subsidy removal, anticipating potential Scarcity.
Transportation fares have also seen a significant spike.
Commuters were observed stranded at various Bus Stops, awaiting Commercial Buses that may have been caught up in the frenzy sparked by the Petrol Subsidy removal.
Buses that were in operation hiked fares by 50 to 100 percent due to fears of Impending Scarcity.
Motorists and commuters expressed their dissatisfaction and concerns over the sudden removal of the Subsidy.
Some lamented the Impact on the already burdened and Impoverished Nigerians who had endured the challenges of the previous administration.
As the days progress and workers and Business owners return to their routines after the Inauguration holiday, the situation is expected to worsen.
This has led to a mixed response from Stakeholders, with some believing that the Subsidy removal is a necessary step while others remain skeptical about its Implementation.
Adetunji Oyebanji, the Immediate past Chairman of the Major Oil Marketers Association of Nigeria (MOMAN) and Managing Director of 11PLC, welcomed the Subsidy removal as a long-overdue development.
However, Mazi Colman Obasi, the National President of the Oil and Gas Service Providers Association of Nigeria, expressed doubts about the promises made in the Inaugural speech, citing the Historical challenges of implementing such plans in Nigeria.
The coming days will shed more light on the Impact of the Subsidy removal, as the Nation navigates the Economic repercussions and potential changes in the Petroleum Industry landscape.
