Several petrol filling stations were shut in Lagos and Abuja yesterday while the few that dispensed fuel had long queues of vehicles. It was also a similar situation in the Federal Capital Territory (FCT), Abuja, as motorists and consumers of the product besieged retail outlets to buy the product. The development, described as “panic buying,” follows the announcement by President Bola Tinubu that an end has come for the era of petrol subsidy payment.
Recall that the President had during his acceptance speech at his swearing-in ceremony in Abuja, yesterday, said since there is no provision for subsidy beyond June in the 2023 budget, it presupposes that it has been removed. “We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. 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,” the President said.
A drive along the major roads in Ikeja, Ikorodu road, Mushin, Ojodu-Berger, in Lagos showed several filling stations were closed to motorists while the few that opened had long queues. For instance, on Ogunnusi road, Ojodu-Berger area, of the three NNPC filling stations, only one opened to motorists with very long queue. Similarly, on Ikorodu Road, stations such as NIPCO, NNPC and Mobil had fairly long queues.
The Nation however observed that the stations had not adjusted their pump price from the official N194 per litre at the Nigerian National Petroleum Company Limited and the N195 per litre at independent stations.
The same situation was applicable to other retail outlets that vended the product while some filling stations had since closed shops in anticipation of the president’s decision on subsidy. Black Marketers, who sold the product in plastic containers were already at work selling 10 litres for N300.
The Nation observed that about four days prior to the President’s inauguration, some petrol marketers and filling stations across the state had resorted to dispensing the product with limited pumps causing slight queues at the stations; while others closed their stations to motorists. This, it was gathered, was in anticipation of a possible subsidy removal or price hike.
Meanwhile, as the queues grow longer, a Professor of Energy and Electricity Law at the University of Lagos, Akoka, Yemi Oke, has chided unpatriotic petrol dealers who have started hoarding the product, following the removal of fuel subsidy. He described their act as “unpatriotic.”
It is unpatriotic and will certainly become counter-productive for any marketer to attempt or contemplate hoarding of petroleum products, or PMS to be precise,” Oke said.
The university don clarified that President Tinubu did not remove petrol subsidy, adding that it was removed by his predecessor, Muhammadu Buhari, who set June as the deadline. He said Tinubu simply emphasised that the current supplementary budget even makes no provisions for subsidy beyond June.
The statement reads: “It is risky for any marketer to attempt to hoard the product because the new regime allows marketers to bring in products and sell as rates suitable to them, 2hixh may even drive prices lower.
“Deregulated petroleum regime simply means that any prudent marketer can bring-in products, and may sell at cheaper rates to edge-out unscrupulous, greedy and unpatriotic marketers.
“The margin of subsidised petroleum and open-market rates is not as substantial, and may even be sold at slightly cheaper rates compared to the current rate.
“Also lending credence to the likelihood of market forces throwing-up slightly cheaper or moderately higher petroleum products rates is the recently commissioned Dangote Refineries.
“Nigerians should definitely expect an abundance of petroleum products, particularly PMS and will deligently manage their consumption patterns.
” Market structures will modulate prices and may drive supply “high” (northwards) and prices “low” (southwards).
” Business prudence demands that the current supplies should not be distorted by unpatriotic marketers who might want to create needless artificial scarcity. Doing this will surely be counterproductive aside from being criminal and reprehensible.”
Source: The Nation
