Motorists groan as petrol prices soar to over ₦600 across Nigeria
Amidst growing economic hardship caused by President Bola Tinubu’s announcement of fuel subsidy removal on May 29, 2023, during his inauguration speech, which saw the price of Petrol increase by over 100 percent, fuel prices soared by nearly 17 per cent in different parts of the country in the early hours of Tuesday, July 18, 2023, leaving many citizens stranded and furious.
There has been speculation since the removal of the subsidy and the unification of the naira that fuel prices can rise to as high as ₦700 per litre.
Recall that Neusroom reported on June 18, 2023, that fuel prices will be determined by market forces as the federal government has ceased to pay a stipulated amount for the price of imported petrol per liter, which previously subsidised the price.
The removal, though praised by some economists like Kingsley Moghalu, former Deputy Governor of Central Bank of Nigeria (CBN), has had far-reaching consequences on ordinary Nigerians, who make up nearly two-thirds of the country’s population.
In Umuahia, the Abia State capital, all fuel stations from Uchenna Junction to Umudike Junction, a 10-minute drive, were closed.
When a Neusroom correspondent asked one of the attendants at the fuel station, he claimed that they do not have fuel.
A manager of another fuel station, when asked why they were closed, simply said, “We do not have petrol for now. You can check back in the evening.”
However, a Nigerian National Petroleum Corporation (NNPC) outlet in the area has increased its prices by 16.50 percent from ₦515 to ₦595, leading to long queues as motorists struggle to get petrol for their vehicles.
A motorist, who spoke to Neusroom on the condition of anonymity, narrated the ordeal his business has faced since the removal of the subsidy.
“I didn’t know what was happening till I came to buy fuel this morning, and all the fuel stations were not open. Now, I just bought from NNPC at ₦600.”
He claimed that since the removal, commuters have been unwilling to pay increased prices.
“It is bad business that I will carry someone from here (Afara Ukwu) to Isi Gate and spend half a litre which is more than ₦250, and the person pays you ₦200.”
One of the direct effects of the removal can be observed in the soaring food prices.
According to the National Bureau of Statistics (NBS), the headline inflation rate rose from 22.41% in May 2023 to 22.79% in June 2023. Also, NBS reported that the Consumer Price Index (CPI) for food increased by just 0.21% from 2.19% recorded in May to 2.40% in June 2023.
However, many have criticised NBS’ new inflation rate, citing that the new data does not reflect the increase in prices of goods and services across the country.
“For those saying ‘lag effect,’ take a look at transport CPI (average transport price) alone. From April to May 2023, transport CPI (month on month) grew by 2.2%, with no subsidy removal. From May to June, it increased by 2.4% with subsidy removal. How is that even possible?” Wilson Erumebor, Senior Economist, and Manager at The Nigerian Economic Summit Group, wrote on Twitter.
He added, “Fuel prices and transport costs went up after the President’s announcement that the subsidy is gone. Even if we accept that the figure is for half the month of June, transport prices went up across the country, way more than the drop in demand. The NBS should explain this to us.”
Another motorist told Neusroom that he noticed a drop in the number of passengers since the removal of fuel subsidy in May.
“Business has not been as usual since May. I do not like going too far to look for passengers because in the end, you may not see any, and you have wasted fuel.”
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the average daily petrol consumption in the country fell by 28% from 66.9 million litres before the removal to 48.43 million litres in June 2023.
As Nigerians continue to feel the impact of the fuel subsidy removal, many are demanding an upward review of the country’s minimum wage.
