The prolonged petrol scarcity across the country has worsened, particularly in Lagos, Ogun, and other states, as independent marketers have begun lifting the product from private depots at a significantly increased rate of N780 per litre, up from N595 per litre, reflecting a 31% hike.
This development has led to a resurgence of long queues at filling stations and a significant increase in pump prices, with independent marketers selling petrol between N900 and N950 per litre.
Meanwhile, major oil marketers’ outlets offer the product at about N568 per litre.
Marketers Blame Supply-Demand Imbalance
Chief Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the price increase, attributing it to the current demand and supply dynamics in the domestic market.
He expressed optimism that the situation could improve in the coming days, noting that more trucks have been dispatched from depots recently.
“NNPC has started releasing products to independent marketers. The queues you are seeing now are ghost queues.
They appear in the morning but disappear in the afternoon or evening. It will continue like that until supply stabilizes in the coming days and becomes sufficient,” Ukadike explained.
He further highlighted the challenges of the rainy season, which has slowed down the transportation of fuel to northern regions, exacerbating the scarcity.
Transport Fares Skyrocket by Over 200%
The petrol scarcity has had a ripple effect on transportation costs, with fares more than doubling in many areas. For instance, a trip from Ikorodu to Victoria Island in Lagos now costs around N6,000, up from less than N2,000 before the shortage.
Mr. Emmanuel Okonkwo, a Sienna bus driver operating the Lagos to Owerri route, described the situation as dire, noting that the scarcity has severely impacted their business.
“Nowadays, there is no fixed fare for trips again, you fix what you like and the way it suits you to enable you to remain in business. The worst aspect of it is that people are no longer traveling like before,” Okonkwo lamented.
Another driver, Mr. Eugene Eze, who plies the Lagos to Port Harcourt route, echoed similar sentiments, expressing frustration over the high cost of fuel and dwindling passenger numbers.
“We are working for nothing under the present fuel scarcity situation. The dilemma is that we can’t increase fares because passengers cannot afford the high fares,” Eze said.
Depots Running Dry, Prices Continue to Rise
Visits to depots in Lagos, including those in Satellite Town, revealed that many are running low on stock, which has led to further price hikes.
Some operators have reportedly planned to increase depot prices to N800 per litre.
Government Response and Public Outcry
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has faced criticism for its absence at filling stations, leading to widespread irregularities, including pump manipulation.
Responding to the situation, Dapo Segun, Vice President (Downstream) of the Nigerian National Petroleum Corporation Limited (NNPCL), attributed the shortages to adverse weather conditions, including rains, lightning, and thunderstorms, which have hampered fuel transportation across the country.
He also cited the poor state of roads as a contributing factor.
“We apologise to Nigerians for the fuel queues. Many of the challenges we’re facing are outside our control, but we’re doing our best to address them,” Segun said during a press conference at the NNPC Towers.
Nigeria at Risk of Becoming a Failed State, PENGASSAN Warns
Meanwhile, Engr. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Trade Union Congress (TUC), warned that Nigeria’s current economic hardships, exacerbated by government policies such as the floating of the currency, could push the country towards becoming a failed state.
Osifo, speaking at the 3rd edition of the PENGASSAN Energy and Labour Summit in Abuja, criticized the government’s economic policies, including the flotation and devaluation of the Naira, which has seen the currency depreciate from N450 to about N1,600 to the dollar since May 2023.
“This is the reason why the landing price of PMS today is over N1,000, the reason why AGO is selling for over N1,300, and the reason why all imported commodities are over the roof today.
The overarching impact of this on Nigerians can only be imagined rather than experienced,” Osifo stated.
