Following the announcement by President Bola Ahmed Tinubu on Monday phasing out fuel subsidies, there have been panic buying, speculative hoarding, and increase of fuel price to the tune of N600 per litre in some states, causing return of queues nationwide and fare hike, Independent Nigeria reports.
President Tinubu had shortly after taking oath of office at the Eagle Square, Abuja, said “fuel subsidy is gone”, noting that his government would instead rechannel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of people.
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In Bayelsa State, long queues of vehicles and jerry cans resurfaced at fuel stations that opened for business in Yenagoa and environs on Tuesday.
Checks by Newspaper correspondent indicated that the petrol stations, operated by independent oil marketers, had increased the pump price of the product from the previous N210 to N450 and N500.
Already, black markets have sprung up near some filling stations along the Isaac Boro Expressway with 10-litre jerry can of fuel selling for between N6,000 and N7,000 while 20-litre was sold for N15,000.
It was, however, observed that only the NNPCL mega facility around the Flyover on the Sani Abacha Expressway was dispensing petrol at N189 per litre, resulting in long queues of vehicles and jerry cans as motorists and residents scrambled for the product.
In Katsina, long queues of vehicles resurfaced at some filling stations that opened for business on Tuesday.
Reports revealed that the petrol stations owned by independent oil marketers had increased the pump price of the product from N210 to N450.
Already, black markets have bounced back to business at various locations in the metropolis and around the ring road with 10-litre jerry can of fuel now been sold at between N6,000 and N7,000 while 20-litre was sold for N16,000 – N18,000.
However, it was observed that the NNPCL mega facilities within the state capital were not dispensing the commodity because they lacked the products.
Similarly, some independent marketers in Katsina said they were still expecting their allocation, stressing that as soon as their vehicles arrive, they will off load and dispense to the public.
In Enugu, most of the fuel stations did not open for business while motorists and residents flooded few filling stations selling fuel.
Checks revealed that a litre of petrol was sold at N300 and N350 as against N230 being sold before the announcement.
At a filling station along Ugwuaji road, the petrol attendant who spoke on condition of anonymity said the manager asked them to sell at N350 per litre against N230 they sold last Sunday.
A motorist, Uche Ogbu, lamented the hike in the fuel price which, according to him, will bring more hardship to the people.
He said, “I wonder why our new president will announce removal of fuel subsidy immediately after swearing in? Is this the kind of government he wants to run without considering the poor masses?
“So we need to buy enough fuel and keep because with the latest announcement by the president, fuel price might go up to N800 or N1,000,” he said.
In Ekiti, the Chairman, Ekiti State Petroleum Task Force, Hon. Israel Adesokan (alias Juru), described the sudden upward and unilateral review of pump price by some independent marketers as criminal and unacceptable.
Adesokan during a raid in Ado-Ekiti with his team following complaints by residents that most fuel dealers now hoard their products while the few ones dispensing had jerked up their pump prices from N243 to N600.
Though those caught indulging in the sharp practices have been sanctioned, with their stations shut down, Adesokan, however, warned that the government of Biodun Abayomi Oyebanji would not condone acts of sabotage or intended to inflict untold hardships on innocent Nigerians.
Speaking after effecting the closure of a filling station in Ado-Ekiti, Adesokan said, “I passed through this place yesterday and this fuel station was dispensing its product at N230, but because President Bola Ahmed Tinubu declared in his inaugural speech that fuel subsidy had gone, these people suddenly increased their pump price to N600. This is pure wickedness and no government would condone this.
“Mr. President just talked about it in his address, it has not been implemented yet, so I don’t expect anybody to start exploiting motorists or members of the public based on this”.
The artificial scarcity paralysed economic activities in the state as few vehicles now ply the roads.
Lamentations have trailed the sudden return of fuel queues in the Federal Capital Territory (FCT), Abuja.
Reports indicated thatsome filling stations stopped selling products ostensibly in speculation for a possible pump price hike while others that opened had long queues.
The situation, however, did not sit well with motorists who complained that it is too early in the Tinubu’s administration for people to start experiencing difficulties such as fuel scarcity.
“I don’t know who wrote that speech for President Tinubu, but the issue of fuel subsidy should not have been mentioned at all. Imagine the hardships that have resulted from that announcement”, a civil servant, Linus Nkwocha, lamented.
Nkwocha recalled that the fuel subsidy removal was to happen in July or thereabouts, wondering how it was mentioned in the speech knowing how Nigerians react to issues of fuel subsidy.
Another resident, a motorist, Musa Aliyu, expressed fear that the situation may be considered a bad beginning for President Tinubu just hours after assuming office even though the intentions may be in the interest of Nigerians and the economy.
“This is not good for a start of government which many are still struggling to accept. For me, it may send a bad signal that the government may have come with a plague for sufferings especially being the first working day after the handover”, Aliyu said.
Rashidat Olaoye said she learnt about the growing queues early in the morning Tuesday when her neighbour who left the house earlier, called to talk about the development.
According to her, the development has disrupted her movement for the day as she planned to go to Mararaba, a suburban border town with FCT, located in Nasarawa State, but had to cancel the appointment because of the difficulty in getting the scarce product.
A visit to some of the filling stations along old Karu Road, Jikwoyi Road, Kubwa Expressway, and Wuse areas revealed that there is deliberate efforts by stations owners to create artificial scarcity as only a few stations are selling fuel to motorists.
Along the long stretch of old Karu Road, no station was selling fuel as both Enyo filling station, and Silvery Resources filling station are not selling but black marketers were seen at the fringes doing brisk business where a keg of 10 litres goes for as much as N4000 double the normal price.
Shafa filling station, Evergreen filling station, NIPCO filling stations were opened but were not selling, only Conoil, AP, and Mobil filling stations were selling at normal N195 per litre but are besieged by motorists struggling to buy creating long queues in each of the filling stations.
Petrol Price Hits N1,200 Per Litre In Ebonyi
The pump price of premium motor spirit (PMS), popularly called petrol, on Tuesday, increased to N1,200 per litre in Abakaliki, the Ebonyi State capital.
Scores of residents, who decried the high cost of petrol in the country, said they have since been engaged in panic buying.
Some residents were also seen with their cans as many filling stations were under lock and key.
A resident, Darlington Okeke, said panic buying was occasioned by Tinubu’s statement during his inauguration on Monday.
Okeke stated that petrol in filling stations was sold between N800 and N1,200, against N230 per litre.
Another resident, Ibrahim Ali, said black marketers sold a litre of fuel for N1,500, adding that the development was causing panic buying and frustration among residents.
He, however, appealed to Tinubu to address the situation to mitigate panic buying and arbitrary hoarding of the products, which marketers introduced after the announcement by the president.
Meanwhile, staff of some filling stations, who spoke under condition of anonymity, disclosed that the management of the Petroleum Dealers Association, Ebonyi State chapter, ordered the closure of fuel stations.
“We are waiting for further directives,” they said.
Efforts to speak with the state chairman of the association, Sailas Njaka, on the development were not successful.
You Can’t Unilaterally Remove Fuel Subsidy, TUC Tells Tinubu
Meanwhile, the Trade Union Congress (TUC) has criticised President Bola Ahmed Tinubu’s announcement of subsidy removal, saying he cannot arrive at such decision unilaterally.
The TUC leadership said it was taken aback, even horrified, when Tinubu announced the withdrawal of subsidy on petroleum products in his inaugural speech, at the Eagle Square Abuja on Monday.
TUC said, “If by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far.”
The TUC said this in a statement jointly signed by its President, Festus Osifo, and General Secretary, Nuhu Toro, on Tuesday in Abuja.
TUC, in its statement, urged the president to initiate robust dialogue and consultation and stakeholders’ engagement.
The statement read: “The Trade Union Congress of Nigeria (TUC) is delighted by the peaceful transition from the Buhari government to the Tinubu administration and across the 28 states of the federation. We congratulate Nigerians and the new administration at all levels even as we urge all those contesting the election results across the board to keep following the rule of law as provided in the constitution and Electoral Act in seeking redress.
“While listening to Tinubus’s inaugural address, we were at first encouraged, by his pledge to lead as a servant of the people (and not as a ruler) and to always consult and dialogue, especially on key and knotty national issues. But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products, if by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far.
“It is not for nothing the Buhari government pushed this to the new administration, but we expect the Tinubu government to be wise on such a sensitive issue and be more explicit in its pronouncement to avoid contradictory interpretation when comparing his written statement, what he said and the provision in 2023 Appropriation Act. We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people, hence ought to have been treated with the utmost caution, and should have been preceded by robust dialogue and consultation with, the representatives of the working people, including professionals, market people, students and the poor masses.”
NLC Asks Tinubu Not To Dare Citizens
Similarly, President of the Nigeria Labour Congress (NLC), Joe Ajaero, has reacted sharply to the announcement by President Bola Ahmed Tinubu on removal of fuel subsidy, cautioning him against daring the citizens.
Ajaero in a statement said the NLC is outraged by the pronouncement of Tinubu removing fuel subsidy without due consultations with critical stakeholders.
He equally criticised the government for failing to put in place palliative measures to cushion the harsh effects of the subsidy removal.
The NLC president, however, advised Tinubu to respect his own postulations and economic theories instead of daring the people. Warning that it could be a costly gamble.
According to Ajaero, within hours of his pronouncement, the nation went into a tailspin due to a combination of service shut downs and product price hike in some places, representing over 300 percent price adjustment.
“By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope. He equally devalued the quality of their lives by over 300 percent and counting.
“It is no heroism to commit against the people this level of cruelty at any time, let alone on an inauguration day. If he is expecting a medal for taking this decision, he would certainly be disappointed to receive curses for the people of Nigeria consider this decision not only a slight but a big betrayal.
“On our part, we are staunchly opposed to this decision and are demanding and immediate withdrawal of this policy.
“The implications of this decision are grave for our security and well-being.
“We wonder if President Tinubu gave a thought to why his predecessors in office refused to implement this highly injurious policy decision?
“We also wonder if he also forgot the words he penned down on January 8, 2012 but issued on January 11, 2012.”
Tinubu On Course To Make Life Harder For Nigerians— LP
Again, the Labour Party said that the new administration of President Bola Tinubu was on course to inflict more pains on Nigerians.
It criticised the president’s inaugural decision to remove subsidies on petrol, describing it as one of his many policies aimed at making life hard for the people.
The party, while condemning what it described as the unilateral decision taken without any form of consultation with relevant stakeholders, particularly, the labour unions, said the president’s action has “instantly pushed Nigerians further into hardship”.
This is as it claimed to have “observed with pain that some of the petrol stations operators simply shut their filling stations and depot owners also shut their operations.
“They have also argued that no clarification was given on the execution of the policy. We are therefore calling on the government to quickly reevaluate the policy, and come up with more practical plans to remove the subsidy in such a way as not to jeopardise the peace of the nation”.
Acting National Publicity Secretary of LP, Obiora Ifoh, on Tuesday by a statement, lambasted the decision, regretting “what a way to announce one’s emergence as the sheriff in town. President Tinubu’s first executive proclamation was such that it is purposed to inflict pains on Nigerians”.
The statement also pointed out that the opposition party was “confronted with the stark reality that less than twenty-four hours after President Bola Ahmed Tinubu took over the reins of power, Nigerians woke up to see the pump price of petrol shot up to N600 per litre and N750 per litre in the black market.
“This is arising from the immediate removal of subsidy on petrol as announced by the new administration.
“As we speak now the queues are back again and Nigerians will, as was the case in the previous administration, begin to keep vigils in the filling station to get just a few litres of petrol.
“As expected commercial transporters have hiked their trip fares across the country in response to the developments. While product hawkers are once more the king of the jungle.”