Nigerians worry as Petrol price hits new level as ahead of scarcity

• Because of the current fuel crisis, the "black market rate" has soared to between N1,300 and N1,600 per litre
• Many people are finding it unaffordable to purchase the necessary petroleum as a result of the circumstances
• Fuel marketers claimed that the present scarcity is due to supply problems as IPMAN is unable to get the product

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Due to the present fuel shortage, the black market rate has increased to N1,300–N1,600 per litre, making it unaffordable for many people to buy the petroleum they require.

The painful reality of the petrol crisis is still being felt by Nigerians. Photo Credit: Ivan Pantic
Source: Getty Images

According to reports, some gas station staff charge up to N2,000 before helping customers at various filling stations, making the crisis profitable.

Petrol scarcity hits hard

The situation remains dire as Nigerians grapple with the harsh realities of the fuel crisis, where getting petrol often comes at a steep and unofficial price.

Douglas Stephen, a businessman, said he had to leave home early this morning to get fuel. Despite his early start, he still spent an hour waiting to fill up his tank.

According to BusinessDay, the landing cost of gasoline was more than N1,000 on Monday, suggesting that the product is being subsidized by the federal government.

Zarma Mustapha, the deputy national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the landing cost of petrol is currently more than N1000, which is more than the current pump rates in Nigeria, which vary by region and ranges from N660 to N800 per litre.

Mustapha said,

“So, you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre.”

Supply challenges fuelling petrol scarcity

Mustapha stated that supply issues are the cause of the current shortage. According to him, IPMAN members are not currently able to accept any products.

The Nigerian National Petroleum Company (NNPC) Limited has, however, linked the difficulties with gasoline distribution and supply to problems with several vessels' discharge operations.

The state-owned oil corporation released a statement claiming that a problem with a few boats' discharge operations is the cause of the gasoline shortage and distribution problems observed in select areas of Lagos and the Federal Capital Territory.

The release signed by Olufemi Soneye, chief corporate communications officer of the NNPC, read,

“The Company further states that it is working round the clock with all stakeholders to resolve the situation and restore normalcy in the operations.”

Otedola Reacts as Tinubu Orders NNPC

Legit.ng reported that Nigerian billionaire, Femi Otedola, has reacted to new directive by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other upcoming refineries in naira.

Legit.ng had earlier reported that the move aims to stabilise the pump price of refined fuel and the dollar-naira exchange rate.

According to the directive, the Dangote Refinery requires 15 cargoes of crude oil yearly, costing $13.5 billion, and NNPC has committed to supplying four.

Source: Legit.ng