Godwin Chukwudi and Bola Olaniyi used to be among the busiest petrol attendants in Lagos. They worked at a busy petrol station that was always packed with motorists queuing up to fill their tanks but all that changed when the government removed the fuel subsidy.
The price of petrol skyrocketed from N187 to N500 per litre, and then to N617. As a result, many motorists could no longer afford to fill their tanks, and the number of vehicles coming to the petrol station dropped drastically.
Chukwudi and Olaniyi were suddenly left with very little to do. They went from being constantly busy to being idle for most of the day. They were worried about how they would support their families, and they are frustrated and angry at the government for putting them in this position.
- “Before the fuel subsidy removal, we were used to attending to about 1,500 vehicles in a day,” said Chukwudi. “But now we are just struggling to attend to about 200. We don’t know what the future holds for us.”
Olaniyi echoed Chukwudi’s sentiments.
- “It is very difficult for us now,” he said. “We don’t know what will become of us, and because of low sales, we are not sure of our regular salary. We are hoping that the government will do something to help us.”
The fuel price hike has had a devastating impact on Chukwudi and Olaniyi.
They are not alone in their struggles. Many other petrol attendants in Nigeria have been similarly affected by the fuel subsidy removal.
The removal of the fuel subsidy has hurt both filling station owners and motorists. Filling station owners are struggling to meet their operating costs, and many are considering laying off staff.
Motorists are having to make difficult choices about how to spend their money, and many are choosing to reduce their driving or even park their cars altogether.
The removal is also having a significant impact on the economy of Nigeria, and it has particularly affected businesses.
Many businesses have been forced to close or reduce their operations due to the high cost of fuel. This has led to job losses and increased poverty.
The fuel subsidy removal is a major blow to the Nigerian economy, and it is having a devastating impact on ordinary people.
Checks by Nairametrics across Lagos State showed that some fuel attendants are lamenting that they are gradually losing jobs as filling stations continued to record a drop in sales following the recent petrol price increase.
According to them, Nigerians were yet to survive the subsidy removal that led to the sudden increase in the price of fuel from N187 to N500 per litre before it was jerked up now to N617.
One of the key factors that led to the increase in fuel price to be sold at N617 per litre according to the Nigerian National Petroleum Company Limited (NNPCL) was the hike in the exchange rate between the naira and the US dollar at the official Investor and Exporters window.
Fuel price hike devastates petrol attendants, forces layoffs
A visit to some patrol stations by Nairametrics showed that some attendants are idle for lack of patronage.
Godwin Chukwudi, a petrol attendant at one of the Total Energies Filling Station in Surulere, Lagos said the number of vehicles that patronized the filing station had dropped drastically due to the negative impact of the fuel hike.
- “Hike in the price of fuel has forced many car owners to park their vehicles at home, which has drastically reduced the vehicles that come to refill fuel in the station. The low patronage has rendered us nearly redundant.
- Before the fuel subsidy removal, we were used to attending to about 1,500 vehicles in a day,” said Chukwudi. “But now we are just struggling to attend to about 200. People are just not buying fuel like they used to. “They’re either walking or taking public transportation,” he said.
Bola Olaniyi, also a petrol attendant at one of the Mobil Filing Stations in Ikeja, Lagos, said that most petrol attendants’ jobs are hanging in the balance.
Olaniyi noted that the significant jump in energy and fuel prices; a downturn in consumer spending as households tighten their belts has made it difficult for them to see business as usual.
Olaniyi said that since the removal of the petrol subsidy and increase in pump price, hardly any motorists fill their fuel tanks, unlike before.
- “It took our customers who usually filled their fuel tanks, days before we see them at our filling stations again.
- “The reality is that the removal of subsidy on petrol is biting hard on Nigerians. Our sales have reduced, this development has made us not sure of our regular salary,” Olaniyi said.
A visit to one of the Conoil filling stations revealed that the usually busy station has become a ghost of itself although the filling station has a stock of fuel.
One of the Petrol attendants on the condition of anonymity told Nairametrics that five petrol attendants were working in the station before the removal of the subsidies but have been reduced to two thereafter.
- “We were five in the number employed as attendants before the hike in petrol price, but the management has trimmed down the workforce to two because of low sales.
- Our sales have dropped from 21,000 litres of fuel per day to 1.000 or 1.500 per day since the increase in pump price.
He said that he is one of two attendants who remain at the station and that he expects that the station will eventually close altogether if sales do not improve.
- If you look around some other filling stations have cut down the number of attendants working for them. It is affecting everybody negatively,” he said.
Also, check at an NNPCL station in Ojodu Berger, Lagos saw some fuel attendants sitting idle for lack of patronage and upon inquiry, some of the attendants said that they are being idle because of the low volume of sales.
As there is not much business, we have no option but to chat and joke, we used to see more than 30 vehicles in an hour before the hike in pump price, but we hardly attend to 10 nowadays. Even the management has put on hold shift duty we use to operate as the business shrinks,” they chorused.
Station managers lament massive drop in sales
Speaking with Nairametrics, Mr, Samuel Omoh Station Supervisor at Mobil Filing Station Ogba, Lagos said:
- “Since the removal of the subsidy, the number of vehicles that come to buy fuel from our station has reduced drastically.
- “We used to attend to no fewer than 27,000 litres every day considering the strategic location of our station, but now, it has reduced to an average of 19,000 litres in a day.
- The increments have paralyzed not only our sales but all other stations across the country. It is affecting us. Since the rate has dropped, the rate at which fuel attendants work has also reduced. We are still maintaining our salaries, but no salary increments yet to cushion the effect of the hike.
- Many car owners have resorted to trekking and using public transport to get to their destinations and only use their cars occasionally”.
A Station Manager at one of the filing stations at Onipanu, Lagos, who spoke to Nairametrics on condition of anonymity, said that the management of the station has reduced the number of attendants from six to three since the removal of fuel subsidies.
The manager said that the sales of fuel at the station have dropped significantly since the hike in the price of petrol leading to a decrease in revenue.
- “33,000 litres of PMS when it was selling for N198 per litre, finish in four days, but now, hardly will it finish in two weeks.
- The reduction in sales has led to the station cutting back on staff. The cutdown is not unique to our station.
- Many filling stations in Nigeria have reduced the number of attendants they employ since the removal of fuel subsidies.
- This is because the high price of petrol has led to a decrease in demand for fuel and the development is leading to job losses which is hurting the economy,” he said.
Mr Fisayo Oguntade, Station Manager of First Royal Filling Station, College Road, Ogba also speaking to Nairametrics exclusively said:
- “We used to attend to no fewer than 500 vehicles every day due to the location of our station, but now, we don’t even record up to 200 vehicles in a day.
- The sales have declined more than half and it is affecting our revenue”.
On whether the company is considering cutting down its staff strength, Oguntade said that no such plan is on the table yet, adding however, that they were expecting an increase in salary before the sudden fuel hike but that has been put on hold following the negative development.
What economists are saying
Dr Osho Okiti, CEO of Think Business, said that the petrol station workers are losing patronage and jobs because their jobs are tied to vehicle activities.
- “Their works depend on vehicle activities and since we have had a reduction of cars on the roads, they are bound to experience low patronage,” said Okiti.
- “If you go to patrol stations nowadays, you will find out that most of the petrol attendants are now idle. Where you have about six attendants, you will see only two busy. This shows that if things continue like this, with time they will lose their jobs.”
The Managing Director, of Crane Securities Limited, Mr Mike Eze also speaking with Nairametrics said that the recent removal of fuel subsidies in Nigeria has had a devastating impact on petrol attendants and businesses across the country.
Eze noted that petrol attendants, who are responsible for refuelling vehicles, have seen their incomes plummet as motorists cut back on driving due to the high cost of fuel.
- “In some cases, petrol stations have even laid off petrol attendants due to the decrease in demand.
- Businesses have also been affected by the fuel subsidy removal.
- Many businesses have been forced to raise prices or close altogether due to the increased cost of transportation. This has led to job losses and increased poverty.
- The fuel subsidy removal is a major blow to the Nigerian economy. It has caused inflation, decreased investment, and led to job losses.
- The government needs to take steps to address the negative impact of the fuel subsidy removal, such as providing subsidies to businesses and offering financial assistance to petrol attendants who have lost their jobs.
- In addition to the economic impact, the fuel subsidy removal has also had a social impact. Many people are now unable to afford to drive, which has made it difficult for them to get to work and school.
- This has led to increased congestion on public transportation and made it more difficult for people to get around,” he said.