By Michael Eboh, Peter Duru, Oghene
Omonisa, Daud Olatunji, Francis Igata &
Aderonke Adeyeri
The hike in the price of Premium Motor Spirit,
also known as petrol, has thrown up a number
of challenges and in response, Nigerians have
been forced to adopt a number of cost-
cutting measures to survive the hard times
thrown up by the increase. Specifically,
Nigerians are introducing ingenious means to
survive the hike and the associated hardship,
some of which include car-pooling, fuel-gauge
watching, cutting down on the use of car air-
conditioning and patronising fuel stations
selling at lower prices.
Already, the National Bureau of Statistics, in
its April inflation report released during the
week, revealed that Nigeria’s headline
inflation reading rose to 15.6 per cent in May,
2016, about 1.9 percentage points in excess of
the previous month’s record of 13.7 per cent.
The latest record did not only indicate a
steady rise since last year (except in August,
2015), but also showed a six-year high point,
matching the same level as in February
2010 The NBS blamed the rise in the country’s
inflation rate on the increase in electricity
rate and fuel price among others.
Motorists groan, device means of survival
A motorist, Mr. Jude Umeh, said the fuel price
increase has hiked his expenditure and
reduced his savings significantly. He said
“prior to the increase, I normally drive into a
petrol station and ask the fuel attendant to
fill up my tank, but I can no longer afford to
do that. In the past, when my fuel gauge is
showing that my tank is half way, I used to
fill up my tank with about N3,500, but now I
cannot afford to fill up my tank from half
way.” Umeh said these days, he could only buy
fuel as much as his pocket allows, stating that
N5,000 can no longer fill his tank when it
drops half way.
Another motorist, a businesswoman, Mrs.
Agatha Otiti, who drives a Sport Utility
Vehicle (SUV), told Saturday Vanguard that
within the first two weeks of the price hike,
she spent N27,000 to fuel her vehicle, which
forced her to have a rethink on her
expenditure as it concerns fuel. She explained
that these days, she no longer comes to town
on a daily basis, from her place in Lugbe, but
only ventures out of her home if she is certain
she has a business deal to close, which would
fetch her reasonable sum of money.
For Mr. Friday Olarewaju, he only comes to
work with his car twice in a week and on days
when he cannot catch up with the company’s
staff bus. He said the decision to limit his
driving time was as a result of the high cost
of petrol, which he lamented was taking a toll
on his finances. He added that the company’s
staff buses had recorded significant increase
in staff patronage, as majority of his
colleagues had abandoned their cars since the
hike in fuel price.
“It was agreed among all the staff that we
would be contributing N1,000 each on a
monthly basis for fuelling the company’s
Toyota Coaster Buses that pick and drop us at
bus stops closest to our house on a daily basis.
As for me, the bus stop is a walking distance
from my house, so it is very convenient for
me,” he explained. Mrs. Anastasia Bakare, said
she, her friends and some of her colleagues
have reached an unwritten agreement to take
turns in driving to the office carrying others.
She said, “When it is your turn to drive, you
carry others, and that is how we arrange it on
a weekly basis. With this arrangement, I
usually end up driving my car to the office
only once a week. This has been helpful in
reducing the amount I spend on fuel on a daily
basis.” Another motorist who chose not to be
named, told Saturday Vanguard that he no
longer uses the air condition in his car, so as
to conserve fuel. According to him, I only use
my car air condition when it is raining heavily,
and when it would be very difficult to drive.
In addition, to save cost, Mr. Usman Salisu
said he does not allow his fuel to reach half
tank before he goes for fill up. According to
him, allowing the fuel to drop to half tank
means one will spend more in filling it up. He
explained that fuel drops faster from the
mid-point of the tank, stating that from the
point at which the tank is full to the mid-
point, it takes a little longer.
“If you want to spend less on fuel, once your
fuel gauge drops from the point at which it is
full, do not let it get to the midpoint before
you fill it up again. That way, you might end
up spending less for fuel on a weekly basis,”
he argued. A private car owner who spoke to
Saturday Vanguard said that since the price
increase, he has been mindful of his
movements to conserve fuel. He added that
filling of his tank is now a thing of the past
as he only buys the quantity that would be
enough for his immediate use, even as low as
two litres.
A commercial bus driver who plies between
Iyana Ipaja and Ayobo Road, Matthew Akinpelu
complained bitterly over the negative effect
of the new price on his transport business. “It
is saddening that these days, I hardly make
money from my transport business because of
the new fuel price. Before now, I was making
a profit of N2,000 with N800 worth of fuel.
But that is not the case since a litre of petrol
now cost N145. Presently, when I buy seven
litres of fuel for N1,015 and after toiling
under the rain from Iyana Ipaja to Ayobo
Road, I make N1,000. Tell me, how do I feed
my family, pay house rent and meet other
responsibilities?”
The price increase has also affected the use
of generating sets. Saturday Vanguard
investigations revealed that many residents of
Lagos no longer keep generators on for long as
it used to be. A filling station attendant at
Conoil filling station, Olude Bus stop, Ipaja,
said due to the new fuel price, the number of
residents who flood the filling station,
especially in the evenings, to buy fuel has
drastically reduced. “Everybody is aware of
the high cost of fuel so, we only put on
generator when necessary”, a resident,
Oluwadare Kosefe, said.
Motorists abandon vehicles
Some motorists in Enugu State have
abandoned their vehicles for commuter buses
and tricycle operators popularly known as
Keke-NAPEP following the hike in pump price
of petrol even as filing stations in Enugu
metropolis and beyond are experiencing a drop
in patronage. Checks at most roads within the
metropolis which include New Heaven, Ogui
Road, Penoks-T Junction, which are renowned
for traffic gridlock showed that fewer
vehicles are on the roads.
Ameobi Chime,a civil servant residing at No. 7
Carter Street,Enugu said, “I parked my car
since December during the fuel scarcity that
ushered in the increase to N145 per liter
from N87.60. I tried to see if I could cope
initially when the new price regime came on
board but I had to abandon my car. I now go
to work by commuter buses. Before I
abandoned my car, I was buying fuel worth
N3,000 daily which was about 13 litres, but I
discovered I could not sustain it. Presently, I
spend about N600 daily on intracity fares
which is cheaper for me to enable me attend
to other family needs.
On his part, a civil servant in Makurdi who
craved anonymity told Saturday Vanguard
that since the increase in pump price of
petrol, he has cut down his weekly budget for
fuel purchase. “Before now, I used to ensure
that my tank is filled every week because I
move around a lot but as it is now, I have cut
down on that. One does not move around
except there is need for it. I buy fuel when
there is also need for it. One cannot afford
that luxury of having a filled tank anymore.”
For Terzungwe Kase, a commercial bus
operator, “the new pump price is killing, most
of us have now devised what we call, ‘buy as
you go’. We buy fuel depending on the volume
of passengers we are able to convey in a day.
Most of us start the day’s work with about 10
litres of fuel and top up as the work
progresses since fuel is available though at a
higher price which has also forced us to
increase transport fare across the state.”
On his part, a barber, James Ameh said, “it is
unfortunate that we are paying so much for
fuel at this time when feeding has become so
difficult. What we do is to buy in small
quantity but unfortunately, electricity supply
is also not stable, so we are facing a difficult
time.” Most people in some parts of Ogun who
spoke with Saturday Vanguard expressed
agony over the increment and many of them
have resorted to parking their cars at home
and taking commercial cabs to get to their
destinations.
Speaking with Saturday Vanguard, Kunle
Olayeni, a journalist and Chairman of Ogun
State Correspondents explained that, before
the increment, he spent N5,000 to fill his
tank but since the increment, he has never
bought a full tank. Olayeni said he only buys
10 litres now which cost him N2,900 and he
tops it when necessary. Also speaking, Olayinka
Olukoya, an assistant editor with a national
newspaper said she spent N4,500 to fill her
tank before the recent increment but she has
now resolved to buying N2,000 worth of fuel.
She said “I can no longer afford to buy full
tank. The economy is sick. Some of us who
have cars don’t usually take our cars out
these days, we prefer to go by public
transport because it makes economic
sense.” An operator of a barbing salon simply
identified as Akanmu said his car would take
60 litres that used to cost N5,000, but now he
only buys fuel worth N2,000, saying he would
need to spend N9,000 if he were to fill his
tank now.
Mr Idris Kelvin Abu, a motorist, said “I spent
N5,200 to fill up my car at the rate of N86
per litre but now I dare not try it, as I will
not spend nothing less than N17,000 to fill my
tank now. “For now we can see the fuel
everywhere, fuel is at every filing station,
there is no more long queue but there is no
money to buy it.
Ajani Sodiq, a commercial motorcyclist while
sharing his experience said, “I spent N1,200 to
fill my motorcycle tank before, but now, I
spend nothing less than N1,700. Mr Waheed
Ogundele, another motorcyclist narrated his
ordeal, saying before the increment, he spent
N1,100 to fill his motorcycle tank, but it has
jerked up to N1,900. “The only thing I see
about the increment is that I can enter filling
station at anytime to buy fuel unlike before
when we would sleep at filling stations.”
Imoleayo Alade, a driving tutor said he spent
N5,000 before the increment, but needs
N15,000 to fill his car tank now while
Adedokun Adelaja, who drives Sienna SUV said
that she spent N4,500 before, while she needs
N13,000 to fill her her tank now. Adedokun
said “in my life I had never experienced such
hardship, I cannot fill my tank again because
of the increment.”
Some of the petrol attendants who spoke with
our correspondent on the condition of
anonymity lamented that despite the fact
that there is fuel, the number of vehicles that
patronise them are very few. They said even
with the low patronage the motorists buy
between 10 and 20 litres.
Fuel stations record low patronage
A petrol attendant in one of the filling
stations at the High Level area of Makurdi,
Benue State capital who gave her name as
Rita said there has been low patronage since
the introduction of the new pump price. She
said, “before now when we were selling at N87
per litre, this place used to be like a war zone
with many vehicle owners struggling and
shouting to be attended to at the same time.
At that time, many would prefer to fill their
tanks because it was a lot cheaper to have
your tank filled up.
“Unfortunately, today the reverse is the case,
as most car owners as well as commercial buses
and motorcycle operators would drive in here
and buy fuel for as low as N1,000. It’s as bad
as that. Besides they come in trickles,
sometimes we sit for as long as 30 minutes
before you see somebody driving in to buy.”
Another attendant at one of the stations in
Makurdi, Abigail Usman told Saturday
Vanguard that sales has dropped significantly
since the introduction of the deregulation
policy. She said, “Before the increase in price,
there was hardly a day we sold less than
10,000 liters of fuel, but now we struggle to
make half of that in a day. People prefer to
buy in small quantities, maybe because the
product is readily available.”
In Lagos, the Manager of Ibukun-Olu Abdul
Azeez (Nig.) Ltd, operators of a filling station
along Olojo Drive, Ojo, who did not want his
name in print said, “there’s no doubt that the
fuel price increase has affected the volume of
sales.” He told Saturday Vanguard that it was
common, before the fuel price increase, for
commercial bus drivers to request their tank
to be filled up, which is about 50 litres and
above. “But now, very few of them still do
that. They prefer to buy as much as they
could afford, even as low as10 litres, and then
come back to buy again.”
He said as for private car owners, their
patronage has drastically reduced. “There are
some who would buy as little as two litres. You
don’t see them order their tank filled up like
they used to”, he said He added that before
the price increase, daily sale was in the
average of 35,000 litres daily, but that,
presently, it would be a good day if they could
sell 15,000 litres as sales now waiver between
12,000 and 14,000 litres per day.
It was a similar situation at Forte Oil filling
station along Oshodi/Apapa Expressway by
Berger Bus stop, Apapa, where the manager
admitted that volume of sales has drastically
reduced, and attributed it to the price
increase. He said before the price increase,
the station would sell between 14,000 to
15,000 litres, but that presently, they sell
between 6,000 and 7,000 litres.
Ebere Unazi,an attendant at Mobil Filing
Station,Ogui Road in Enugu regretted that
the volume of sales has reduced due to the
increment in pump price of PMS. “We do not
sell as we used to before now. A 33,000 liter
fuel which normally lasted a week now stays
for months before we finish dispensing it to
few motorists. This is because very few people
can buy fuel these days at N145. Some of our
colleagues were laid off the other day
because the employers said the turnover has
dropped drastically. We operate on Sundays
now to see if we could sell off our stock
timely but this has not helped”.
Demand for petrol has reduced by 50 percent
—MOMAN
However, Mr. Akin Akinfemiwa, Chairman,
Major Oil Marketers Association of Nigeria,
MOMAN and Group Chief Executive Officer of
Forte Oil Plc, said the seeming availability of
the product is due to the fact that the hike
in the price of product has dragged demand
for petrol down by 50 per cent. While the
many tales of woes persist, motorists are
calling on the Federal Government to
introduce measures that would help alleviate
the sufferings of people and also take steps
to put up palliatives and other incentives that
would be beneficial in the short, medium and
long term.
Nigerians are also urging the Federal
Government to ensure that the refineries are
fixed, while oil facilities are adequately
protected to avoid disruption in supply of
petroleum products across the country.
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