Panic buying triggers inflated price by black market operators
By Jeph Ajobaju, Chief Copy Editor
Long queues have emerged at petrol stations in Abuja and neighbouring Niger and Nasarawa as fear of subsidy removal trigger panic buying by motorists who want to stock up as N162 pump price per litre would more than double without subvention.
The panic is unnecessary, however, as President Muhammadu Buhari listened to agitation for once and on Monday announced through Finance Minister Zainab Ahmed that fuel subsidy removal has been shelved until further notice.
Oil marketers attributed panic buying to fears that the government might stop subsidy, with the Nigeria Labour Congress (NLC) threatening massive nationwide protests before it called them off on Tuesday evening.
Many filling stations were shut on Tuesday morning; the few that dispensed petrol were greeted with massive queues. Black marketers sold fuel in jerry cans at inflated price.
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Marketers assure on supply
Nipco and Nigerian National Petroleum Company (NNPC) filling stations on the Kubwa-Zuba expressway had long queues, as well as some in Abuja city centre, Nyanya in Nasarawa, and Zuba in Niger, per reporting by The PUNCH.
But oil marketers reiterated the queues are unnecessary, saying there is enough petrol in stock in Nigeria and more coming through imports.
Petroleum Products Retail Outlets Owners Association of Nigeria (PPROOA) President Billy Gillis-Harry insisted the queues are not due to product scarcity.
“The queues are basically due to panic buying and people don’t need to be. We as Nigerians should try and only respond to what is accurate,” he said.
Sylva blames fuel queue on hoarding, panic buying
Petroleum Resources Minister of State Timipre Sylva explained in the Villa in Abuja on Tuesday that implementation of subsidy removal has been pushed back 18 months to mid 2023.
He said queues in filling stations around the Federal Capital Territory (FCT) arose through a combination of hoarding and panic buying.
“I remember very well when I was passing by a filling station I noticed queues building up, but this is not natural. When people expect a particular policy direction, they want to take steps against it.
“Some want to profiteer, and they begin to hoard. Some people also want to make sure that they stock enough PMS in their homes so that whenever there is an announcement, they will have enough in storage.”
Subsidy removal extended 18 months
Sylva said extension of subsidy removal period will give all stakeholders adequate time to implement it in a way that ensures all modalities are in place to cushion the effect.
His words: “We also see the legal implications. There is a six-month provision in the PIA [Petroleum Industry Act], which will expire in February, and that’s why we are coming out before the expiration to say, this is what we intend to do, and if we listen carefully, I also mentioned to you that we’d engage the legislature.
“We believe that this will go to the legislature; we will apply for some amendment of the law so that we will still be within the law. We are proposing an 18-month extension, but what the National Assembly will approve will be offered.
“We will propose an 18-month extension, and then it’s up to the National Assembly to look at it and then pass the amendment as they see fit.”
He denied that the government suspended subsidy removal because of the 2023 election, and stressed that talks are ongoing with Labour and a comprehensive policy direction would be announced in July.
“Of course not. It’s just the human face of the government and the President especially. He wants specific structures to be in place, and he insists that if we’re going to remove subsidies, we must make sure that we put every measure in place to protect the suffering masses of Nigeria. That is the President’s insistence.
“So, we are now taking steps to ensure that these processes are in place, and this now gets into the Labour engagement that we are talking about. We are already talking with Labour, and our discussion with Labour is also around these palliatives and mitigations.
“That’s why we decided at this time, especially since the legal timeframe is fast approaching, we thought we should let you know that we are taking steps to amend the law and to ensure that we are within the law.”