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Removal Of Fuel Subsidy Will Force Fuel Price To Jump To N500 Per Litre, Says IPMAN

Following the removal of petrol subsidy and the harmonisation of foreign exchange rates by the new government of President Bola Ahmed Tinubu of the ruling All Progressive Congress(APC), the Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that fuel pump price may rise to N500 per litre

Long queues resurfaced in Abuja, Lagos, Port Harcourt, Kaduna, Kano and other cities across the country shortly after newly sworn-in President Tinubu announced the removal of fuel subsidies in his inaugural speech on Monday, 29 May, 2023

The announcement triggered a rush to filling stations as consumers moved to buy fuel at the current official pump price of N185. The panic-buying led to long queues at some of the petrol stations selling the product.

IPMAN National Operations Controller, Mike Osatuyi, the subsidy removal would provide oil marketers and importers a level playing field. He appealed to Tinubu to fulfill his promise by channeling the accruals of the subsidy removal to infrastructure and other programmes that will benefit Nigerians.

“It (fuel subsidy removal) is a welcome development, we have been saying before. Now that it has been removed, it is going to create a level playing ground for all the marketers, and importers and we are not going to engage in competition which is importation by marketers.

“Talking about the sufferings of Nigerians, we cannot have our cake and eat it. The removal of fuel subsidies will definitely increase the price of petrol. When he (Tinubu) was campaigning he said that from day one, he will remove the fuel subsidy, which he has done today.

But the question now is to let them now use it as he has promised to benefit Nigerians,” Osatuyi said;

“Now that he has said he would harmonise the exchange rates and remove the arbitrate, then we should not be looking at forex at N460/$1, we should be looking at forex at about N600 and N700/$1. If that happens, we should not expect anything less than N500 per litre of petrol.” Osatuyi added.

In Lagos, queues reappeared in such areas as Ikorodu, Ikeja, Victoria Island, Lekki, Onipanu, Ogba, Alimosho, Ojo, Mile 2, FESTAC and many other areas. Information from other states indicated panic buying by petrol users and queues at petrol stations.

It was also learnt that the managers of some petrol stations have shut their retail outlets and refused to sell petrol to anxious buyers who besieged their stations.

Tinubu said in his augural speech: “On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So the fuel subsidy is gone.”

Source: The Telegraph


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