Speaking on the fuel queues which have been common across the country, which began on Monday after President Bola Ahmed Tinubu announced the end of subsidy, he said that the queues were a result of the panic of the people, and that there was no cause for alarm, as the queues will clear out between two to three days……CONTINUE READING...CONTINUE READING
Explaining the reason for the queues, he said, “First of all, I think we’re to understand why the queues are there in the first instance. First is panic. Panic in the sense, not what we use to know where there is supply gap, because we don’t have a supply gap.
Customers will see as soon as the signal was made that we could exit the subsidy regime people rushed to the fuel station ’let me buy the cheap fuel before they change the prices’.
This is very typical, when people go into the fuel station they will buy, instead of buying 10,000 naira fuel, they will buy 20/30,000, of course that causes the pressure, it causes the delays in filling the tanks of the cars in the fuel station and naturally you will have queues coming up.
The subsidy removal, which caused a rise in PMS prices in Africa’s largest economy, was initially scheduled to end in February 2022 but was extended until the first half of 2023 due to economic hardships.
“The second reason is inventory management. Oil marketing companies will know that they have to go back. They know the current market realities, they know that if you just leave it at that price, you can’t go back to the market……CONTINUE READING
