Home News Petrol Price surges Amid scarcity

Petrol Price surges Amid scarcity

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The ongoing petrol scarcity has left Nigerians lamenting over the surge in prices across various states nationwide.

This regional crisis became evident on Wednesday, August 14th, 2024, as motorists in states like Abuja, Kaduna, Niger, Adamawa, Kano, Bauchi, and Delta, among others, faced outrageous queues at filling stations.

 

It is reported that the situation of the South-West is not as severe as in other states, highlighting that the cost of petrol in most of the affected states was close to ₦1,000/litre at filling stations.

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Marketers have explained that the South-West is experiencing fewer queues because petrol usually moves from the coastal areas in this region up to the North. However, recent protests have disrupted the free movement of trucks to other regions. They also noted that petrol suppliers prioritize their stations in the South-West before sending products to other regions. With the low supply, it’s become challenging to get enough petrol to the far North.

 

Black marketers exploited the fuel scarcity in certain states, selling petrol at inflated prices ranging from ₦1,200 to ₦1,500 per litre, depending on the location.

 

The fuel scarcity caused a spike in transport fares in the affected states, with many passengers spending hours waiting at bus stops to reach their destinations.

 

Oil marketers blamed the prolonged petrol scarcity on the limited supply by the Nigerian National Petroleum Company Limited, stressing that the development had become worse to the point that the national oil firm now allegedly rations PMS to one truck per state.

 

NNPC stayed mute when contacted to speak on the persistent fuel scarcity and the claims by dealers that it was rationing PMS supply.

 

Some Nigerians have called out NNPC to explain why the scarcity has continued to linger.

 

Since July 27, 2024, when NNPC blamed the fuel scarcity on a hitch in the discharge operations of some vessels, the situation has yet to record any significant improvement.

 

The Independent Petroleum Marketers Association of Nigeria reported on Wednesday that there was no hope of improvement as at Wednesday.

 

The Vice National President of IPMAN, Hammed Fashola, said marketers can only push out whatever NNPC makes available.

 

According to Fashola, there is a shortage in fuel supply and marketers have had cause to ration the little they get.

 

“No hope on fuel scarcity yet. Whatever NNPC brings is what marketers will push out. There is a shortage in supply. We are still managing whatever we have,” he stated.

 

Asked if there was any formal communication from NNPC on the reason for the scarcity, Fashola replied in the negative but stated that he believed the energy company was working round the clock to restore normalcy.

 

“No formal communication yet. We believe that NNPC is working round the clock to make sure they wet everywhere with the product. We as marketers are supporting them to ensure that we dispense the fuel to the public appropriately,” he submitted.

 

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, confirmed Fashola’s position, as he revealed that all his filling stations were empty.

 

“All my filling stations are empty. I don’t have products to sell. That is the true situation right now. There is no supply from NNPC. So I cannot tell you when the queues are going clear,” he stated.

 

Asked whether the national oil firm has explained the reason for the scarcity, Gillis-Harry replied, “They have given us no reason, and we are anxiously waiting to know why. But just know that we don’t have the product to sell and it is not the fault of marketers because we don’t import PMS. NNPC is the sole importer.”

 

Operators had earlier stated that the depots in Apapa, Lagos did not get enough supply from NNPC.

 

According to them, demand is currently higher than what the sole importer of PMS could bring into the country.

 

The operators said though vessels were bringing in imported fuel, the supply had remained below what the country needed to get rid of the current fuel crisis.

 

“There is no fuel at the depots. Whatever is being imported now is not enough to fight the current scarcity. And the price is high because marketers now get petrol at N730/litre from private depot owners. There is nothing we operators can do when there is no supply.

 

“The supply is not increasing because the importer is incurring too much debt. The more they import, the more the debt on NNPC, so they continue to ration. Everywhere is dry, and even major marketers are affected. NNPC retail outlets are affected. The situation is worse in Abuja, especially at Airport Road,” a dealer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

 

Another marketer alleged that the national oil company had started rationing supply to the extent of giving out just one truck per state.

 

“As at when there was enough supply, marketers get as much as they can buy. If there are 3,000 filling stations in a state and each of them can buy a truck, they are ordinarily meant to get it.

 

“But what we saw in Lagos on Wednesday was that NNPC was giving out just one truck per state. And if this is not addressed as soon as possible, the scarcity will ground activities nationwide,” the dealer stated.

 

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