By Adewale Sanyaolu
The fuel crisis in Nigeria has escalated, leaving motorists in Lagos scrambling for petrol and enduring long waits at filling stations. The situation has deteriorated to the point where some drivers are keeping vigil overnight to secure fuel, highlighting the severity of the shortages.
Independent marketers have taken advantage of the scarcity, with prices soaring to as much as N920 per litre, a significant jump from the standard rates. Meanwhile, major marketers have kept prices relatively stable at around N618 to N620 per litre. The disparity has exacerbated the crisis, creating long queues and severe traffic disruptions in key areas of the city, as motorists flock to stations with lower prices.
In addition to the official market, black market operators are thriving. On Mobolaji Bank Anthony Way, for instance, black market prices have skyrocketed to N1,200 per litre. This illicit trade flourishes as legitimate supplies dwindle, with many stations unable to meet the demand due to inconsistent delivery schedules.
Depot operators at Apapa have reported that berthing spaces for fuel vessels have been vacant for days, pointing to a critical supply chain issue. The lack of incoming shipments has left these spaces idle, a rare occurrence that underscores the depth of the crisis. Marketers with access to fuel are exploiting the situation, hiking prices and capitalizing on the desperation of the public.
Addressing the situation, Olufemi Soneye, Chief Corporate Communications Officer at the Nigerian National Petroleum Company Ltd (NNPC), attributed the disruptions to a hitch in the discharge operations of a few vessels. He assured the public that the company is working tirelessly with all stakeholders to resolve the issue and restore normal fuel distribution.
The crisis has not only affected consumers but also the operators of fuel retail outlets. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed frustration over the recurrent shortages.
He noted that retailers can only sell the products available to them, and when supply glitches occur, there is little they can do. The scarcity is taking a toll on businesses, with many outlets struggling to cover operational costs, including staff salaries.
Gillis-Harry further highlighted a structural issue in the market: the lack of competition, with NNPC Ltd as the sole importer of petroleum products. Even with licenses issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for independent imports, the scarcity of foreign exchange has hampered the ability to procure supplies.
Adding to the complexities, Zarma Mustapha, Deputy National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), pointed to the impending nationwide protest as a contributing factor to the fuel queues. He explained that the uncertainty surrounding the protest has made transporters and marketers hesitant to dispatch trucks for fuel delivery, fearing potential disruptions.
Mustapha urged those planning to protest to conduct themselves responsibly, warning against the potential for unrest and property damage. He emphasized that while the right to protest is fundamental, it should be exercised without inciting violence or chaos, especially given the volatile situation.
As the fuel crisis continues to unfold, it is clear that a multi-faceted approach is needed to address the underlying issues. The government, along with industry stakeholders, must work swiftly to resolve supply chain disruptions, stabilize fuel prices, and ensure fair competition in the market. Only then can the nation hope to alleviate the burdens faced by its citizens and businesses alike.