Fuel scarcity is gradually emerging in Lagos and other regions of Nigeria due to private depot owners increasing the ex-depot price of petrol from N630 to N720 per litre. This situation has exacerbated fuel scarcity in Abuja and nearby states, with some filling stations selling petrol at prices as high as N900 per litre.
Reports from PUNCH correspondents indicate that several filling stations in Lagos, Ogun, and other states have run out of stock, as they are unwilling to purchase the high-priced fuel from private depots. In an interview on Sunday, Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that many filling stations were closed because they had no fuel. He urged the Nigerian National Petroleum Company Limited (NNPC), the sole importer of petrol, to clarify the situation.
Fashola stated, “Those that shut their stations do not have fuel to sell. When you don’t have fuel, you cannot open your station. That is the problem. You know the NNPC is the sole importer of this product. I think it is in the best position to tell us what is actually going on.”
Independent marketers, Fashola noted, cannot afford the fuel prices set by private depots, which range between N715 and N720 per litre. He highlighted the high costs associated with transportation and other depot expenses, which make it unfeasible for marketers to sell fuel at reasonable prices, leading to the closure of many stations. Fashola also advised Nigerians to avoid panic buying, suggesting they purchase only what they need to ensure the fuel in circulation can meet demand.
Private depot owners previously sold petrol to independent marketers at N630-650 per litre, while the NNPC sold petrol to major marketers at prices below or around N600 per litre. Despite repeated appeals from IPMAN leaders for the NNPC to supply them directly, the NNPC has yet to comply.
Sources revealed that NNPC officials directed various depots in Apapa to prioritize fuel supply to Abuja, where fuel queues initially appeared on Friday. Consequently, many trucks were dispatched to Abuja over the weekend, reducing the supply to Lagos and other regions. This move by the NNPC to ration petrol to depots is a response to a fuel supply gap.
A recent Reuters report claimed that Nigeria’s debt to petrol suppliers had surpassed $6 billion, doubling since early April. This has allegedly caused the NNPC to struggle to cover the gap between fixed pump prices and international fuel costs. Despite NNPC’s denial, the report stated that delayed payments to suppliers, dating back to January, ranged between $4 billion and $5 billion. Some suppliers have reportedly stopped participating in tenders due to self-imposed debt exposure limits, withholding further supplies until payments are made.
Further findings indicate that major marketers sold petrol below N650 per litre, while independent marketers sold it between N750 and N800 per litre. A depot operator disclosed that due to limited supplies from the NNPC, major marketers are prioritizing their stations over independent marketers, leading to stockouts at many independent outlets.
In Lagos, queues began forming at fuel stations on Sunday, raising concerns among residents. Observations showed that some stations had adjusted their prices upward, reflecting the scarcity. In Abuja and its environs, fuel stations operated by independent marketers sold petrol at N900 per litre, while major dealers sold it at lower prices, leading to long queues at the latter’s outlets.
The IPMAN president, Abubakar Maigandi, explained that the ex-depot price of petrol had increased to N710 per litre, impacting the pump prices at independent marketers’ stations. He noted that transportation and operational costs further raised the retail prices, making it challenging for independent marketers to compete with NNPC’s lower prices.
Nationwide, various regions reported varying petrol prices and availability. In Ogun State, petrol sold for between N700 and N800 per litre, while in Ekiti State, prices ranged from N650 to N760 per litre. In Kwara, prices ranged from N600 to N750 per litre, and in Edo State, independent marketers sold petrol between N700 and N730 per litre. In Rivers State, the NNPC sold petrol at N591 per litre, whereas other stations sold it between N750 and N760 per litre.
The fuel scarcity has led to long queues and price hikes across the country, with some regions experiencing significant shortages. The NNPC has not yet responded to calls for comments on the situation.
In conclusion, the fuel scarcity in Nigeria is primarily driven by the high ex-depot prices set by private depot owners and limited supplies from the NNPC. This has led to widespread shortages and increased prices, causing significant inconvenience and economic strain on motorists and businesses.
