Contrary to his unequivocal pronouncement during his inaugural speech on Monday that fuel subsidy was gone, a pronouncement that led to immediate scarcity of the product, President Bola Tinubu has backtracked.
The Ashiwaju Bola Ahmed Media Centre has explained in a tweet that the announcement of the removal of the fuel subsidy on Monday by the President will no longer take immediate effect.
The Centre, in a statement, urged the public to relax panic-buying that has ensued as a result of his speech.
The statement explained the development was neither a new development nor an action of his new administration.
The Tweet reads: “The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration.
“He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.
“Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination.
“The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.
“Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor.
“This includes but is not limited to investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.”
Meanwhile, the pronouncement has led to chaos nationwide.
Petroleum dealers in Ogun State have jacked up the pump price of the product by as much as over 50 per cent. A litre of fuel now sells between N250 and N350 in few filling stations that were selling the product on Tuesday in Abeokuta, the Ogun State capital.
Others simply shut down since 10am on Monday and refused to sell as at noon on Tuesday.
The development also triggered panic purchase by residents, leading to resurgence of long queues and attendant hike in prices of transport fare and other services in Abeokuta metropolis.
Many commercial motorcycle operators and taxi drivers are off the roads as they were holed up by long queues at few filling stations selling the products while few that are working charge prohibitive fares on passengers.
For example, taxi fare from Kemta to Sapon used to be N100 and N150 depending on the time of the day. But on Tuesday, taxi drivers were asking for N200 or N250 from passengers, citing the increased pump price of fuel by dealers as the excuse.
Some of commuters resorted to trekking to their destinations or cover part of the journey/distance on foot before boarding taxi to the final destination.
Long queues have also returned to petrol stations in Akure, Ondo State and environs as commercial drivers increased transportation fare.
Some motorists accused marketers of hoarding fuel to create artificial scarcity and hike the price.
Two petrol stations visited along Oba Adeshida Road were selling fuel for N220 and N250 per litre.
At Oba Ile area, Akure North local government area, motorists said petrol stations pegged their prices at N500 per litre.
In Ikare Akoko, fuel was sold at between N250 and N300 per litre while transportation cost was increased to N200 per drop.
Residents engaged in panic buying for fear of further scarcity of the product.
Chairman of IPMAN, Ore Depot in Ondo State, Shina Amoo, said they were monitoring situation to know when it would stabilise and the next step to take.
Amoo denied allegation of fuel hoarding by marketers saying product was not available at many of the fuel stations.
He said some officials of IPMAN have gone round petrol stations and urged them to dispense product.
Amoo said it was difficult to predict price of fuel with the removal of subsidy.
Special Adviser to Governor Oluwarotimi Akeredolu, Doyin Odebowale, said the State Government was awaiting further statement
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