Fuel scarcity has resurfaced in Nigeria as many oil marketers have closed their outlets, leading to long queues at retail stations across the nation. BusinessDay’s investigation revealed that an unfavourable working environment, market instability, bad roads, and a shortage of foreign currency are contributing factors to this situation.
In Lagos, queues have been observed at the retail outlet of the Nigerian National Petroleum Company (NNPC) Limited in King’s Way Road, Ikoyi. TotalEnergies at Eric Moore has closed its gate to motorists to prevent congestion, while Saitara Petroleum and Gas at Orile Iganmu has shut down its operations. Tinpet Nigeria Limited has increased its petrol pump price to N605 per litre.
In Abuja, many marketers have raised their pump prices from N615 per litre to N625 per litre. Matrix Energy Limited in Delta state announced an increase in petrol and diesel prices to N598 and N958 per litre, respectively.
Independent marketers attribute this development to the challenges of importing the product, citing market instability, bad roads, and a shortage of foreign currency. The black market dollar exchange rate, exceeding N1,045, adds to the difficulties.
Although the downstream sector is deregulated, NNPC remains the sole importer of petroleum products, causing a gap in the supply chain. Abdulkadir Mustapha, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Borno state, highlighted challenges in product availability from NNPC and noted that private depots are out of stock.
Mustapha explained the difficulties in distribution, stating, “Fueling a diesel truck to take products to and from the depot of origin either Lagos to Maiduguri or Warri to Calabar to Maiduguri without servicing the truck and other minor and major repairs now cost N2 million.” He emphasized that the total cost per litre of petrol, including transportation, stands at N657 without a return on investment.
