Eleven months after the removal of fuel subsidy by the Bola Tinubu-led federal government, Nigerians are still grappling with fuel scarcity and enduring long queues at petrol stations nationwide.
Despite assurances from the Nigerian National Petroleum Company Limited (NNPCL) of regular supply, the situation persists, with oil marketers attributing blame to various factors.
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President Bola Tinubu eliminated fuel subsidy entirely on May 29, 2023, during his inauguration, leading to a sharp increase in petrol prices nationwide. The removal of subsidy was intended to open up petrol imports to the private sector, as stipulated in the Petroleum Industry Act 2021, thereby breaking the NNPCL’s monopoly on petrol importation.
However, due to challenges in obtaining foreign currency, private oil firms have been unable to engage in significant importation, leaving the NNPCL as the sole importer of petrol in Nigeria once again.
Despite earlier announcements by the NNPCL indicating a shift away from sole supplier status, the company has resumed its monopoly, citing challenges faced by oil marketers in managing price volatility in the downstream sector.
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Recent observations reveal persistent fuel queues in major cities like Lagos, Abuja, and Kaduna, with some independent petrol stations experiencing shortages.
While prices remain consistent in some areas, reaching as high as N1,000 per litre on the black market, others fluctuate between N568 and N724 per litre.
The NNPCL has assured the public of regular supply, urging against panic buying and emphasizing sufficient product availability. However, reports from independent marketers indicate irregular supply in recent days, raising concerns among consumers.
Various reasons have been cited for the scarcity, including logistics issues impacting petroleum product supply, demands for increased haulage costs by transportation associations, and fluctuations in global oil prices. Despite assurances from the NNPCL and industry associations, the situation persists, disrupting transportation and causing inconvenience for motorists nationwide.
Efforts by the NNPC Retail Limited to address supply issues have been ongoing, with promises of normalization within affected areas. However, the impact of these efforts remains to be seen as consumers continue to grapple with the effects of fuel scarcity on their daily lives.
In conclusion, despite the government’s efforts to liberalize the petrol market and promote competition, challenges such as foreign currency constraints, logistics issues, and price fluctuations continue to plague the industry, leading to ongoing fuel scarcity and long queues at petrol stations nationwide.
This article was sourced from Leadership Newspaper.
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