Fuel Subsidy Reform: President Tinubu’s Assurance of Affordable Fuel

President Tinubu pledges to ensure continuous access to fuel at the lowest possible prices, working closely with marketers and stakeholders.

DAPPMAN shows commitment to achieving market stability and a robust petroleum industry.

Fuel is vital for any economy, particularly in Nigeria where it is crucial for daily life and business operations.

President Bola Ahmed Tinubu is now championing an initiative that promises continuous access to fuel at the lowest possible prices for all Nigerians.

President Tinubu’s Promise

On June 8, President Tinubu took to his social media accounts to assure the nation that despite the removal of the fuel subsidy, his administration would ensure affordable fuel distribution.

He emphasized his commitment to a transparent, stable, and competitive oil market, challenging marketers to collaborate with the government to actualize this goal.

Collaborating with Major Players

The day before this announcement, the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), led by Dame Winifred Akpani, held a meeting with the President.

They voiced their readiness to work with his administration in achieving market stability and extended a request for the removal, reduction, and suspension of some charges and levies.

Making Fuel Accessible and Affordable

The DAPPMAN, in line with the President’s directive, promises to foster a healthy and robust petroleum industry.

Their vision is to guarantee an adequate supply of petroleum products at highly competitive prices.

The days of Nigerians suffering in long petrol queues will soon be a thing of the past.

The Future of Energy in Nigeria

According to DAPPMAN, reducing Nigeria’s dependence on fossil fuels will encourage investment in alternative energy sources such as gas and electricity, catalyzing their faster development.

An Initiative for Mass Transit Buses

In a bold move, DAPPMAN has plans to introduce mass transit buses that run on compressed natural gas (CNG) and diesel interchangeably, with an initial fleet of 50 to 100 buses as a short-term goal.

Oil and Gas: Still Relevant in the Energy Mix

As Nigeria diversifies energy sources, oil and gas will remain crucial.

According to a 2023 report by the International Energy Agency (IEA), despite the increasing prominence of electrification in recent years, oil and gas account for approximately 35% of total energy consumption in buildings and a staggering 95% in transportation.

Oil as a Catalyst for Economic Prosperity

Haitham Al Ghais, Secretary-General of OPEC, supports this perspective.

He asserts that oil, as a valuable resource, will drive economic progress, especially in developing nations, for many decades.

President Tinubu’s promise of ensuring access to affordable fuel, in collaboration with key stakeholders, has the potential to revolutionize Nigeria’s energy sector.

Looking ahead, the diversification of Nigeria’s energy mix and the strategic importance of oil and gas will be vital for sustainable economic growth.

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FAQs

What is the fuel subsidy reform?

The fuel subsidy reform is a policy initiative by President Tinubu’s administration to remove subsidies on fuel, thereby allowing market forces to determine fuel prices.

How will the removal of the fuel subsidy affect Nigerians?

While the removal of the fuel subsidy may initially lead to higher fuel prices, the administration’s commitment to working with marketers to ensure affordable fuel distribution should mitigate this impact.

What is the role of DAPPMAN in this initiative?

DAPPMAN is committed to working with the government to ensure a healthy and robust petroleum industry, providing Nigerians with an adequate and competitively priced fuel supply.

What are the plans for alternative energy sources?

Efforts are underway to accelerate the advancement of alternative energy sources like gas and electricity through investments and development plans.

What is the extent of oil and gas’s significance in Nigeria’s energy composition?

Despite the growth in electrification, oil and gas still dominate Nigeria’s energy consumption, especially in transport and building sectors.


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