Di African kontri wey Nigeria fuel subsidy removal dey affect

Female fuel attendant in Africa

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Prices of petrol don nearly double across fuel stations for Benin Republic.

Di west African kontri price increase dis week afta Nigeria scrap fuel subsidy.

“Gasoline don rise from 450 CFA to 700 CFA or even 800 CFA” na so Benin-based tori pesin Clément Sodji tell BBC.

Tori be say some of Nigeria subsidised petroleum products na Benin dem dey smuggle am go, and dem dey mostly sell di products by di roadsides.

Di petrol dey serve one large population of di West African kontri.

Dem dey call di product kpayo — wey mean “unoriginal” for Goun, dia native language — e dey cheaper to buy dat one dan buy fuel for stations, wey dey set at 650 CFA, local media report.

Dis new development for Benin dey come only days afta Nigeria new President, Bola Ahmed Tinubu for im inauguration speech say fuel subsidy don go.

Tinubu statement on Monday cause panic buying and long queues for fuel stations and increase di price.

Who remove fuel subsidy for Nigeria?

President Bola Tinubu

Nigeria President Bola Tinubu and Wife Senator Remi Tinubu

Nigeria fifth president since return to democracy for 1999 end decades of petrol subsidy wen im say “fuel subsidy is gone,” for im inauguration speech on 29 May 2023.

Di 71-year-old politician no give timeframe or any details on how im plan to go about di mata but tok about how e go be “gradual process”.

Within hours of Tinubu first address, hundreds of pipo rush enta street wit dia car or jericans to buy fuel.

Only few bin dey lucky to buy petrol as most fuel stations claim say dem don run out of di product.

Afta di chaos na im di president team come out to clarify say scrapping of subsidy no go take effect until end of June- in line wit di outgoing administration budget.

By dat time e don too late to stop di panic.

And by Wednesday, e become official say goment don stop subsidy di state-owned oil company NNPCL announce say dem don raise di price of petrol.

Wetin be Fuel Subsidy?

Fuel subsidy na form of goment intervention to reduce di cost of fuel.

Goment dey provide direct financial support to oil companies, so dem go fit reduce di price of di product to consumers (Nigerians) to make am dey affordable for dem.

Nigeria na one of Africa largest producers of crude oil and e dey rely heavily on dis resource for dia economic growth.

Sake of say Nigeria no get refinery, dem gatz export dia crude oil go anoda kontri come import di refined crude oil. Di money wey dem go take refine dis crude oil dey expensive and make e for no be burden on consumers, goment dey pay some part of di money to marketers.

Dia fore goment dey control di price and na di amount dem tell marketers to sell, dem go sell am.

Dis na how common pipo dey benefit from goment, according to dem.

Di official reason for oil subsidy na to reduce di effect of rising global oil prices on Nigerians.

Fuel subsidy don dey di kontri since di 1970s.

E become normal tin for 1977, under di regime of General Olusegun Obasanjo wit di promulgation of di Price Control Act wey make am illegal for some products (including petrol) to dey sold above di regulated price.

Between 2006-2018, Nigeria don spend about 10 trillion Naira on petroleum subsidies.

African kontris wey don remove fuel subsidy

New fuel price for Lagos Nigeria

New fuel price for Lagos Nigeria

Nigeria– Bifor goment remove subsidy fuel price, na 185 naira ($0.40, £0.32) per litre for petrol for di kontri.

Now wey goment don remove subsidy, di price range from 480-550 naira ($1.18).

Ghana – Di west African kontri remove fuel subsidy many years ago.

Fuel price for Ghana na £1.44 ($1.80) or 14 cedis ($1.24) respectively for a litre.

Angola– Di second largest oil producers for Africa withdraw fuel subsidy on Thursday.

Finance Minister Vera Daves say di withdrawal of fuel subsidies come as a result of a sovereign decision by Angolan goment.

E follow goment decision to raise di price of petrol from 160 kwanza ($0.27) to 300 kwanza ($0.51) per litre, wey come into effect on Thursday dis week.

Di new measure no go affect public service vehicles and motorcycles – di operators go get a non-transferable pre-paid card wey dem go use buy fuel.