Fuel Scarcity Worsens As Stations Sell N800/Litre, 240m-Litre Vessels Arrive

Nigerian National Petroleum Company Limited (NNPCL) began offloading 240 million litres of Premium Motor Spirit better known as petrol on Monday, as it stepped up efforts to tackle the worsening nationwide fuel scarcity. 

Meanwhile, filling stations in various locations across the country sold the product at an average price of N800 per litre.

According to a report by  The PUNCH, the South-West Regional Coordinator of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ayo Cardoso said that 240 million litres of petrol imported into the country came in through five vessels, which were offloaded into five depots on Monday.

The PUNCH reported on Monday that despite claims by the NNPCL that the logistic issues causing fuel scarcity had been addressed, Nigerians in Lagos and other parts of the country still struggled to get fuel as many filling stations remained shut.

The situation might worsen in Lagos and other parts of the southwest as there reportedly was a directive by the NNPCL that fuel trucks must first service the Federal Capital Territory before any other places. According to oil sector sources, hundreds of trucks loaded were sent to Abuja on Sunday based on the directive.

On Monday, many filling stations hiked their pump prices, selling a litre of petrol between N650 and over N1,000. As a result, black marketers used the opportunity to make brisk business, selling a litre of petrol at prices of over N1,200/litre, depending on the location and the bargaining strength of the buyer.

The fuel scarcity also coincided with the resumption of public schools in some states, adding to the burden on parents, teachers, and school owners.

NMDPRA’s Cardoso said the agency was doing its best to ensure Nigerians were not exploited by filling stations, adding: “We are doing something about the fuel crisis; very soon it will be over. Vessels are discharging as I am talking to you. What we are concentrating on is to push the NNPC, which is the supplier of last resort, to make sure they wet the entire populace.

“So, we have about five vessels already discharging the product, about 240 million litres are being discharged as I am talking to you right now. We are working round the clock.

“But then, once you have a problem, it takes like one or two weeks to (normalise), but people will keep on panicking, which is not supposed to be. All these kinds of things disrupt the normal way of operations. But with 240 million litres coming in from five vessels discharging to five depots already today, things will get back to normal”.

Commuters heading to work, schools, and various destinations in Abeokuta, the Ogun State capital on Monday found themselves stranded due to the effect of the lingering fuel scarcity.

Many bus stops were filled with passengers trying to board vehicles to schools and places of work.

Some students were also sighted trekking home because they could not get cabs on time while those who offered to carry them increased the fare by 70 percent.

Cardoso said that NMDPRA could no longer regulate prices, saying petrol was deregulated following the removal of subsidy by President Bola Tinubu on 29th May 2023.

“For now, the price is based on supply and demand, but we are still going out to make sure that people are not exploiting consumers.

“My people are on the field; they are going round. So, if you see any specific one you think we should handle, you can let us know. But since morning, we’ve been on the field, including myself, making sure nobody is hoarding. You know once there is enough 

supply, all those things will be a thing of the past.

“We don’t handle price anymore; it is deregulated since the subsidy has been removed. What we do is that there is a price bound that we are monitoring. The person who can determine the price is the person who is supplying marketers, and that is the NNPCL.

Once the NNPCL says this is what they are selling, we just expect that there will be some margin around the NNPCL figure and it should not be too excessive”, Cardoso said.

He further said: “If the NNPCL is selling at N580, we don’t expect anybody to sell more than N630 or N650 at worst. If you let us know those selling at N700 or N800, we will take action. But you have to know that this is happening because there is scarcity. Outside scarcity, those things will come down. We can’t use the current prices to judge what the normal price should be.

“Any station we get to, and we see hoarding, we will ask them to start selling and they have to sell at the official NNPC price”.

Meanwhile, Nigerians have been warned to stop hoarding fuel in their houses to avoid a fire outbreak.

“We want to tell everybody that they should be patient, things will get cleared very soon. We have quite enough fuel being discharged. We want to enjoin people not to store fuel at home because of the safety issues around it.

“This is a flammable product, and you cannot guarantee how to handle it if you store it in your house. People should not store petroleum products at home. There will be enough fuel very soon”, Cardoso stated.

Source: The PUNCH