By Ayodimeji Falade
With blooming fuel black market businesses on every corner, Nigerians might be facing an all-time fuel scarcity with a pump price speeding towards N500 per liter.
Even though the federal government is proposing a total removal of the fuel subsidy, would it get worse than what we already have?
Ikejabird looks at reasons fuel prices are skyrocketing and its frequent scarcity.
1. Private depot price increment
In October, western chairman of the independent petroleum Marketers Association of Nigeria (IPMAN), Mr. Dele Tajudeen said, ravaging fuel scarcity was a result of fuel increment from the depot.
He said, filling stations are buying PMS at N178 as against the usual N148.17 depot price.
This played out because major NNPC depots have no fuel to sell to marketers, making private depots the only option. Private depots have capitalized on this and inflated the prices of the PMS product exorbitantly.
Since many stations can’t buy, it has led to the scarcity of petroleum products.
2. Flooding in Lokoja
The release of a dam and incessant rainfall caused a heavy flood in lokoja, the state which connects the North central to the southern petroleum hub in Nigeria.
This impacted the supply of petroleum to the north where major roads used for bringing in the product are located.
It triggered another scarcity in Abuja and major northern cities until alternative routes were used.
Piping transport should have been a better option in this situation, and it would save the cost of using trucks to distribute this PMS product.
3. Federal government excessive methanol claim
The government in February claimed excessive methanol substances in petroleum products imported.
Methanol, an addictive substance is contained in PMS but in moderate quantity, after discovering the surplus, the federal government swiftly recovered affected products from the market.
However, the immediate withdrawal from the market space subsequently led to the shortage of this PMS product.
4. Diesel cost
Sudden increase in diesel prices also contributed to scarcity and hike in prices.
Diesel fuel is a commodity that has big impact on businesses, companies, and industries. They are used for powering generators due to poor electricity in Nigeria. They are also used by trucks to supply fuel at stations.
Its high pricing has affected fuel stations’ efficiency as they have had to reduce working hours to lessen the cost of diesel.
Diesel is sold for N800-N850, an increase from the N288 sold in January 2022.
This alarming fuel scarcity and hike in prices would lead to unbearable hardship for Nigerians as the December rush nears.
Petrol is being sold in some Lagos stations for N280/N300 while other southwestern states sell for N250/N270, making it a possibility for PMS to be sold for N500 if necessary solutions are not provided.
