"Instead, we will reinvest money into public infrastructure, education, health care and jobs, thereby dramatically improving the lives of millions of people," added President Tinubu.
This is a drastic move for a country where for decades gas has been cheap and has become a lifeline for millions of economically struggling Nigerians. The government has repeatedly sought to scrap fuel subsidies and the last attempt was made in 2012, but the proposal has sparked nationwide protests. Angry protests, known as "Occupy Nigeria," have broken out for weeks after President Goodluck Jonathan tried to end subsidies.
Immediately after President Tinubu's announcement, people immediately lined up outside gas stations, with the mentality of hoarding fuel before gasoline prices increase.
President Tinubu's office later issued a statement confirming the price support would end on June 30.6, but this did not stop some stations from selling gas at higher prices.
State oil company Nigeria National Petroleum Corporation (NNPC) on May 30.5 confirmed that the retail fuel price has been adjusted but did not disclose the new price.
The company explained this reflects “current market realities,” adding it should be noted that prices will continue to fluctuate to reflect market dynamics.
At NNPC retail stations in the capital Abuja, gasoline prices have been adjusted from 195 Naira/l to 537 Naira, nearly three times the old price.
The decision to end fuel subsidies is part of a larger government effort to deregulate the oil industry.
Fuel subsidies have drained public finances, and many argue that they have led to widespread abuse and corruption.
Despite longstanding calls to stop subsidies, the Nigeria Labor Congress (NLC), an umbrella organization for unions, said it still disagrees with Mr Tinubu's decision and demands that the leader reverse the decision immediately.
"With his impertinent decision, President Tinubu on his inauguration day brought tears and sadness to millions of Nigerians instead of hope," group leader Joe Ajaero said in a statement.
Analyst Sam Amadi, director of the Abuja Institute of Political and Social Thought, said the Nigerian government's new policy will make it more difficult for Nigerians, especially as they grapple with soaring inflation and high costs of living.
“Travel costs will increase by more than 200%. More people will fall into poverty, and unrest and violent crime could increase, damaging prospects for a stronger economic recovery," said Amadi.
While Amadi knows that fuel subsidies are not sustainable, ending it “suddenly” without provision for economic and social consequences is a “reckless” move.
Despite being an oil producing country, Nigeria lacks refining capacity and spends billions of dollars on imports of refined petroleum products every year.
Nigeria is also grappling with growing government debt, unprecedented inflation, high unemployment and a heavy reliance on dwindling oil revenues.
