Mixed Reactions Trail Tinubu’s Fuel Subsidy Removal, IPMAN Says It’s Ill Timed

The Independent Petroleum Marketers Association of Nigeria, IPMAN, has opposed the plan by President Bola Tinubu to enforce his predecessor’s decision to remove fuel subsidy by June ending.

Tinubu had on Monday, in Abuja, during his inaugural address, affirmed that his administration would not continue to pay subsidy on petroleum products. He said given the high opportunity cost the Federal Government was suffering to fund subsidies, it was no longer justifiable to continue.

The President said “We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions”.

Though we commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor, but just like the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Ukadike Chinedu said, the new government should have dialogued with marketers before taking the decision to remove subsidy.

According to IPMAN, “We are not in support of the removal of fuel subsidy at this time. We have said it repeatedly that our refineries should be fixed before taking such decision that will cause galloping inflation and inflict more hardship on the masses. That is not fair and should not be adopted. Rather, the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” Ukadike stated.

When contacted to state their position on the issue, the Petroleum and Natural Gas Senior Staff Association of Nigeria stated that it would not comment on the development now, as it was currently studying the new administration.

While IPMAN insisted that subsidy should not be removed without the repairs of Nigeria’s refineries, the Major Oil Marketers Association of Nigeria maintained its position that fuel subsidy should stop. The Executive Secretary, MOMAN, Clement Isong, said Nigeria was burning its earnings by paying trillions as subsidy on petrol.

Barely a few hours after Tinubu’s announcement on subsidy, fuel queues resurfaced in Abuja, Lagos and some states. The announcement triggered a rush for petrol at fillings stations in Abuja and neighbouring states by motorists, as they struggled to get their tanks filled, over fears that once subsidy ends, the cost of PMS could rise above N500/litre.

Reacting to the announcement, the presidential candidate of the African Action Congress (AAC), Omoyele Sowore, expressed concern, saying that the fuel subsidy removal announcement has already triggered fuel scarcity and price gouging all over Nigeria. Sowore stated this in a tweet via his verified Twitter handle.

Meanwhile, the presidential candidate of Social Democratic Party’s, SDP, Adewole Adebayo has described the announcement of the fuel subsidy removal as untidy and ill-timed. Noting that it might appear too early to criticise the President, Adebayo said President Tinubu should be reminded that the occasion of his inaugural speech was not the best avenue to have announced the suspension of such a macroe-conomic policy.

He insisted that Nigerians would need a shock absorber in the form of alternative measures, to cushion the effect of fuel subsidy removal before any action could be taken in that direction. IPMAN is insisting that though it is ready to work with the new government, they would rather proffer measures to address the fuel subsidy regime, instead of effecting an outright halt in subsidy.