Fuel scarcity worsened across Nigeria on Monday, with most filling stations in Abuja and other states closed and some charging up to N900 for a litre of petrol.
Transportation costs rose as the shortage that began last week continued, affecting businesses and commuting, and pushing many to buy from the so-called black market where prices are even higher.
A motorist who shuttles between Abuja’s Kubwa district and Berger in the Wuse area said he bought a litre of petrol for N1100 from street hawkers, making him to charge his passengers more.
The immediate impact on transportation adds to the burden of an unprecedented cost of living crisis Nigerians have grappled with in the last year after President Bola Tinubu removed petrol subsidy, more than tripling the retail price to N617 a litre.
Alongside the devaluation of the naira, the subsidy removal which the government said will lower government spending and resolve supply issues, pushed consumer prices skyward, leaving millions struggling to buy basic needs including food.
Inflation reached 33.95% in May from 33.69% a month earlier. Still, fuel scarcity has continued, occasionally, despite the high prices.
“Fuel Transfers Affect Supply”
Chinedu Ukadike, the public relations officer for the Independent Petroleum Marketers Association of Nigeria (IPMAN), told Pluboard that filling stations remained closed because they did not have product to sell.
State-run oil company NNPC Ltd. blamed “logistics challenges and flooding” for the return of fuel queues.
The Nigerian National Petroleum Corporation Limited said queues were due to disruptions to offshore fuel transfers and flooding hindering deliveries.
“The adverse weather condition has also affected berthing at jetties, truck load-outs and transportation of products to filling stations, causing a disruption in station supply logistics,” spokesperson Olufemi Soneye said in a statement.
“The NNPC Ltd also states that due to flammability of petroleum products and in compliance with the Nigerian Meteorological Agency (NIMET) regulations, it was impossible to load petrol during rainstorms and lightning.”
He said the NNPC Ltd was working to resolve the challenges but did not provide details on when normal operations would resume. Mr Soneye did not respond to Pluboard’s calls seeking additional information.
Learn More
The Tinubu administration last year opened petrol imports to private companies but foreign currency shortages and a cap on the price of petrol has meant NNPC remains the sole importer.
Mr Ukadike said fuel supply and cost problems will ease when the recently launched Dangote Refinery gets fully on stream.
“Once Dangote starts selling locally, those importing will record losses as this will crash the price of petrol,” he said.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.