Nigerian President Bola Tinubu has scrapped a decadeslong government-funded subsidy that has helped reduce the price of gasoline, leading to long lines at fuel stations on Tuesday, May 30, 2023, as drivers scrambled to stock up before costs rise.
As people rushed to buy gas in major cities like Abuja and Lagos, marketers have more than doubled the price at the pump from the usual 40 cents per liter, resulting in a surge in the price of transport.
Tinubu announced the removal of the subsidy moments after his inauguration as president on Monday, signaling his administration’s plan to finally end an initiative that officials said cost the Nigerian government an estimated 18.39 billion naira ($39.8 million) daily in 2022.
He did not say when it would take effect, but the immediate past government had planned to end the initiative by June 30.
Nigeria’s oil refineries are struggling, with production sinking to multidecade lows amid massive oil theft, meaning Africa’s top oil producer depends on imported refined petroleum products.
The government, however, pays part of the price per liter to marketers to cover the landing costs and reduce the pump price for consumers.
The resulting hike in gasoline prices could cause more hardship in a country where many already are struggling to cope with record unemployment and poverty levels and inflation that is at an 18-year high.
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: Panicked Motorists in Nigeria rush to stock up on Fuel as Subsidy ends){kind=link}
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