“Fuel subsidies are gone!” With those words, an otherwise unexciting first speech by President Bola Tinubu soon became a trending topic. While the removal of fuel subsidies was written into law through the Petroleum Industry Act, it was due to happen in June. Bola Tinubu’s announcement may only have pushed the timeline up a couple of weeks, but it prompted a mad rush to fuel stations. The Federal Government has kept fuel prices artificially low for decades—between N25 to N185 per litre. But worsening government finances means that fuel subsidies no longer make financial sense. A BusinessDay report has now confirmed that the new pump prices for fuel will range between N488 to N550 per litre.
While fuel price increases will affect every aspect of the Nigerian economy, the logistics and transportation sector will arguably feel the impact first. Logistics startups that spoke to TechCabal say they will raise prices this week and are preparing for a slowdown in delivery…
