Following President Bola Ahmed Tinubu’s announcement on May 29 regarding the removal of fuel subsidies, the cost of petrol has experienced a notable increase and this surge has directly impacted transportation expenses.
TheNewsGuru.com (TNG) reports that the subsidy removal policy is part of the government’s efforts to address economic challenges, streamline expenditures, and promote fiscal sustainability.
However, its immediate impact has been felt in the transportation sector, leading to an increase in costs for both commuters and businesses.
Public transportation operators, including bus, taxi, and tricycle services, have raised their fares to compensate for the higher fuel costs and commuters, particularly those relying on public transportation, are feeling the pinch of increased fares, leading to reduced disposable income for other essential expenses.
As increase in transportation costs also affects the prices of goods and services across, commodities such as food, household items, and other essential goods are already witnessing a rise in costs, imposing an additional burden on households, especially those with limited incomes.
One affected Nigerian Mino Tauri said: “Removing fuel subsidy without fixing the problems is like having a car without wheels, it’s going nowhere. The problem doesn’t go away.”
Public Analyst Shoba Adebayo, noted that every time there is a proposal to remove fuel subsidy, fuel marketers swiftly respond by shutting down their filling stations, depriving Nigerians of access to the already subsidized fuel they have in stock.
“This immediate scarcity results in a period of hardship, which we are currently witnessing. Consequently, while the marketers profit from this situation, they simultaneously fuel and provoke the Nigerian people against the federal government due to the difficulties they have created,” he said.
The recent increase in the pump price of petrol by the Nigeria National Petroleum Company Limited (NNPCL) and other fuel stations from N195 to between N537 – N570 has been met with opposition from the Nigeria Labour Congress (NLC), who consider the new price unacceptable and demand its immediate withdrawal.
President of the Nigerian Labour Congress Joe Ajaero, expressed dissatisfaction with the lack of consensus reached in the meeting.
He specifically criticized the Nigerian National Petroleum Corporation Limited for releasing an official statement that revised the petrol pump price at its filling stations across the country, stating that this action had created a challenging situation for the labor unions during the negotiation process.
“The subsidy provision has been made up to the end of June. And before then, conscious people, labour management, government, should be able to think of what will happen at the end of June. You don’t start it before the time,” Ajaero said.
A spokesperson for the Federal Government Dele Alake, announced during a press briefing that the discussions would continue at a later date.
“We are continuing talks at a later date, very very shortly. But the important thing is that talks are ongoing. It’s always better to keep talking with a view to arriving at a very amicable solution that would be in the interest of all Nigerians. That’s the much we can say now,” Alake said.
The surge in transportation costs contributes to inflationary pressures within the economy, as Small and medium-sized enterprises (SMEs) that heavily rely on transportation for their operations face increased operational expenses.
Proffering solutions to the situation, legal practitioner Adonye George, advised the government to consider measures to stabilize fuel prices, such as diversifying energy sources, improving refining capabilities, and encouraging investment in alternative energy solutions.
He added: “Introducing targeted subsidies for public transportation services can help alleviate the burden on commuters and ensure affordable transportation options for the general public.
“Implementing policies and initiatives to support small businesses affected by increased transportation costs can help them remain competitive and minimize the negative impact on employment.”
Nigerians expect that the Tinubu-led administration would take proactive steps to address the challenges arising from this policy change, focusing on measures to stabilise fuel prices and provide the necessary support to mitigate the impact on the general public.
