Subsidy removal: Stop patronizing black marketers, Sanwo-Olu cautions residents

IBRAHIM QUADRI 

Lagos State Governor, Mr Babajide Sanwo-Olu on Friday urged residents to stop patronizing unregistered marketers, saying with the new regime on Petroleum Motor Spirit (PMS) otherwise called petrol, market forces would determine the prices.

The Governor who was represented by his Deputy, Dr Kadri Obafemi Hamzat went around Lagos metropolis to monitor the activities of filling stations.

According to him, people should desist from panic buying, saying since the fuel subsidy had gone, there was enough volume of fuel available for residents.

Hamzat, who addressed journalists at one of the filling stations in Ikoyi explained that subsidizing fuel for the rich is not sustainable.

He said, “The regime of fuel subsidy was announced to have ended. Lagos is always the epicentre of everything, 40 per cent of cabs are in Lagos, and whatever affects PMS, affects Lagos, so the essence is to go around and assess the situation.

“For us, it is to make sure that there is no scarcity, people don’t need to rush. Prices have gone up but in terms of volume, there is enough volume. So there is no question of scarcity.

He added, “Don’t patronize black marketers. The bottom line is very simple because there is no regime of fuel subsidy again. People don’t have the incentive to hoard anymore. It was sold for N185 in Nigeria and in the Republic of Benin selling for N650, that is why we claim the volume is high, so the volume will crash. 

He stressed that there are “48,000km of borders in Nigeria, even if you deploy the military, the navy, people will steal because we are talking of market, we are subsidizing fuel for other countries.

“I think that is to be clear to all of us. So in the next two to three months, the volume will crash and the market will determine the prices.

“Various commentators and IMF have told us we are spending trillions of naira subsidizing substantially rich people because we are spending on 13 per cent of the less privileged, 87 per cent for people who can afford it, it doesn’t make sense. 

“So if we are able to plough that money back, then it makes it easier to invest in education, health and others. So the President will be able to harness it and be able to use it for various projects.

“I understand that transportation fares have gone higher but the only thing is that it will get a little tougher before it gets better.

“Remember, the prices in Lagos will be different from Ibadan. And even in Lagos, because of efficiency, prices will differ but you are not subsidizing anybody’s inefficiency. It is a question of time, in just two or three months, things will stabilize so if the international prices crash, they will also crash. Competition will always make it crash, market forces will determine the prices,” he noted.