Fuel subsidy: President Tinubu promises access to fuel at lowest possible prices

President Bola Ahmed Tinubu has promised Nigerians continuous access to fuel at the lowest possible prices.

He made the statement on June 8 via his social media account. According to the president, his administration will work towards ensuring that the fuel subsidy removal does not hamper fuel distribution at affordable prices.

He wrote: “At a meeting yesterday with representatives of major oil marketers’ associations, in the course of the discussions, I emphasized my administration’s total commitment to a competitive, stable, and transparent oil market and challenged the marketers to work with the government to ensure regular supply and convenient access to fuel products across the country at the lowest possible price.”

Backstory

On June 7, 2023, the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) led by its Chairman, Dame Winifred Akpani, met with President Tinubu and pledged their readiness to work with the administration to ensure that market stability is achieved.

They also asked President Tinubu to scrap, reduce and suspend some charges and levies until the goal has been realized. DAPPMAN promised to ensure a healthy and robust petroleum industry that guarantees an adequate supply of petroleum products at highly competitive prices.

So, Nigerians will no longer have to suffer in petrol queues. The association also anticipates reduced dependence on fossil fuels, which will result in increased investment and faster development of gas and electricity as alternative energy sources.

According to the DAPPMAN Chairman, the association has collectively agreed that it is going to work at providing real mass transit buses that work, the ones that run on compressed natural gas (CNG) and diesel interchangeably, and hopefully it is going to start with about 50 to 100 buses in the short term.

What you should know

Although it will serve Nigeria to diversify its energy mix to include electrified transportation, it is clear that oil and gas will still play a huge role in the near future. In its Energy Technology Perspectives report released in January 2023, the International Energy Agency (IEA) stated that electrification has accelerated over the last two decades. However, oil and gas still dominate energy end use, accounting for around 35% of total energy use in buildings and 95% in transport.

Also, the Secretary General of the Organization of Petroleum Exporting Countries (OPEC), Haitham Al Ghais, has said that oil will fuel economic development, especially in developing countries. According to Al Ghais, crude oil is instead a precious commodity that will enable economic prosperity for decades to come.