Before President Bola Ahmed Tinubu took over office on May 29, 2023, fuel was sold at N198 per litre. Outlets of the Nigerian National Petroleum Corporation Ltd (NNPCL) which now have different prices, depending on the location, also sold at the old rate.
However, in his inaugural address at Eagle Square, Abuja, Tinubu exclaimed “Subsidy is gone”, resulting in an instant increase in fuel price from N198 to N540 at NNPC outlets.
According to the president, fuel subsidy had become a clog in the wheel of progress and needed to give way for the country to survive. Tinubu, who said subsidy was fueling corruption, vowed to pump the money saved from it into others aspects of the economy.
“You have paid attention to the subsidy removal. Why should we in good heart and sense, feed smugglers and be Father Christmas to neighbouring countries, even though they say not every day is Christmas? The elephant that was going to bring Nigeria to its knees is the subsidy. A country that cannot pay salaries and we say we have potential to encourage ourselves. I think we did the right thing,” Tinubu had told some monarch who visited him at Aso Rock a month after subsidy removal.
FRESH INCREASE IN LESS THAN 2 MONTHS
On July 18, 2023, the pump price at NNPCL outlets rose from N540 to N617 per litre. This was when Nigerians were still trying to adjust the cost of living crisis occasioned by the increment. The Group Chief Executive Officer of NNPCL, Mele Kyari, had attributed the rise in pump prices to market forces.
According to him, the hike reflected the dynamics of a market-regulated pricing model.
Addressing journalists after a closed-door meeting with Vice President Kashim Shettima at the State House, Abuja, Kyari said, “They are just prices depending on the market realities. This is the meaning of making sure that the market regulates itself. Prices will go up and sometimes they will come down also.”
He debunked notions that the price increase is due to a shortfall in petrol supply.
13 MONTHS’ BREAK
Amid protracted fuel queues, NNPCL attributed fuel shortage to supply disruptions caused by outstanding debt obligations to international oil traders. The corporation did not disclose the exact amount owed to oil traders, but reports said the debt was to the tune of $6.8 billion. Before acknowledging being indebted, the oil firm had repeatedly told Nigerians that things were under control. However, the queue worsened and prices were inflated. In a statement on September 1, 2024, Olufemi Soneye, NNPC spokesperson, said the corporation’s ability to sustain fuel supply was under threat.
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