Prices skyrocket as petrol scarcity bites harder

Nigerians have expressed anger and frustration over the prolonged scarcity of Premium Motor Spirit, popularly called petrol, across various states nationwide.

It was observed on Wednesday that the scarcity of petrol led to widespread queues by motorists at filling stations in Abuja, Kaduna, Niger, Adamawa, Kano, Bauchi, and Delta, among others.

Although the queues were not severe in the South-West, findings showed that the cost of petrol in most of the affected states was close to N1,000/litre at filling stations.

Marketers explained that the South-West had fewer queues because petrol normally moves from the coastal areas in the zone to the North, adding that the recent protests halted the free movement of trucks to other regions.

They further noted that suppliers of petrol would first supply their stations in the South-West before moving products to other regions, stressing that the low supply had made it tough to have enough products to take other states far North.

Black marketers took advantage of the situation in states that had severe scarcity, as they sold petrol for between N1,200/litre and N1,500/litre depending on the area of purchase.

This led to a hike in transport fares in the affected states, while many passengers spent several man-hours waiting for vehicles at different bus stops to get to their destinations.

Oil marketers blamed the prolonged petrol scarcity on the limited supply by the Nigerian National Petroleum Company Limited, stressing that the development had become worse to the point that the national oil firm now allegedly rations PMS to one truck per state.

NNPC stayed mute when contacted to speak on the persistent fuel scarcity and the claims by dealers that it was rationing PMS supply.

NNPC is Nigeria’s sole importer of petrol. Other marketers stopped importing the commodity due to their inability to access the United States dollar required for fuel imports.

Some Nigerians on social media asked NNPC to explain why the scarcity has continued to linger.

Since July 27, 2024, when NNPC blamed the fuel scarcity on a hitch in the discharge operations of some vessels, the situation has yet to record any significant improvement.

The Independent Petroleum Marketers Association of Nigeria told The PUNCH on Wednesday that there was no hope of improvement as at Wednesday..

The Vice National President of IPMAN, Hammed Fashola, said marketers can only push out whatever NNPC makes available.

According to Fashola, there is a shortage in fuel supply and marketers have had cause to ration the little they get.

“No hope on fuel scarcity yet. Whatever NNPC brings is what marketers will push out. There is a shortage in supply. We are still managing whatever we have,” he stated.

Asked if there was any formal communication from NNPC on the reason for the scarcity, Fashola replied in the negative but stated that he believed the energy company was working round the clock to restore normalcy.

“No formal communication yet. We believe that NNPC is working round the clock to make sure they wet everywhere with the product. We as marketers are supporting them to ensure that we dispense the fuel to the public appropriately,” he submitted.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, confirmed Fashola’s position, as he revealed that all his filling stations were empty.

“All my filling stations are empty. I don’t have products to sell. That is the true situation right now. There is no supply from NNPC. So I cannot tell you when the queues are going clear,” he stated.

Asked whether the national oil firm has explained the reason for the scarcity, Gillis-Harry replied, “They have given us no reason, and we are anxiously waiting to know why. But just know that we don’t have the product to sell and it is not the fault of marketers because we don’t import PMS. NNPC is the sole importer.”

Operators had earlier stated that the depots in Apapa, Lagos did not get enough supply from NNPC.

According to them, demand is currently higher than what the sole importer of PMS could bring into the country.

The operators said though vessels were bringing in imported fuel, the supply had remained below what the country needed to get rid of the current fuel crisis.

“There is no fuel at the depots. Whatever is being imported now is not enough to fight the current scarcity. And the price is high because marketers now get petrol at N730/litre from private depot owners. There is nothing we operators can do when there is no supply.

“The supply is not increasing because the importer is incurring too much debt. The more they import, the more the debt on NNPC, so they continue to ration. Everywhere is dry, and even major marketers are affected. NNPC retail outlets are affected. The situation is worse in Abuja, especially at Airport Road,” a dealer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

Another marketer alleged that the national oil company had started rationing supply to the extent of giving out just one truck per state.

“As at when there was enough supply, marketers get as much as they can buy. If there are 3,000 filling stations in a state and each of them can buy a truck, they are ordinarily meant to get it.

“But what we saw in Lagos on Wednesday was that NNPC was giving out just one truck per state. And if this is not addressed as soon as possible, the scarcity will ground activities nationwide,” the dealer stated.

Northern states

In Adamawa State, transport fares skyrocketed on Wednesday as the price of petrol increased in filling stations in Yola, the state capital. Some filling stations dispensed PMS at between N870/litre and N900/litre.

At Optima Oil located along Yola-Mubi road, a litre of petrol cost N900, while at NUT filling station it was N870. At MRS filling station located along Yola-Numan road, the cost was N850, while at Ned Oil it was N890.

Out of the more than 10 NNPC mega stations in the state capital, only one sold petrol on Wednesday as it witnessed long queues of motorists.

On the black market, the cost of petrol was between N1,500 and N1,700, depending on the area of purchase.

This affected the cost of transportation, as the fare from Yola to Mubi that used to cost N4,500 before, increased to N7,000 per passenger on Wednesday. From Yola to Numan, the fare was N1,500 before, but rose to N2,500.

Fuel scarcity resurfaced in Kaduna, leaving motorists stranded and frustrated in the state capital on Wednesday.

Long queues were seen at fuel stations where petrol was available, while many independent marketers claimed to be out of stock.

At NNPC mega stations around Aliyu Makama road by Living Faith Church Barnawa, motorists waited in endless lines, causing traffic congestion and forcing other road users to take alternative routes.

The fuel was sold at N620/litre at the NNPC mega station, a price significantly lower than the N930 to N950/litre charged at other stations in the metropolis.

Motorists expressed frustration and confusion, wondering why the scarcity persisted despite the high prices.

“We’re buying petrol at a cut-throat rate, yet it’s out of sight. Why?” asked John Ayaga, who had been waiting in line since early morning.

The scarcity has led to a boom in black market sales, with petrol sold at exorbitant prices of N1000 to N1300/litre and N4500 to N5000 per gallon, depending on the location.

Sule Ahmed, a black marketer, revealed that they source their fuel from fuel attendants, who sell it to them for resale to desperate motorists. “Fuel attendants sell it to us, and we in turn sell to other motorists,” he said.

This illicit trade is flourishing due to the shortage, causing hardship for many residents who are forced to pay inflated prices in the state.

The development has had a ripple effect on transportation costs, with fares soaring to unprecedented heights. The cost of a tricycle (Keke Napep) ride from GT Barnawa to Central Market (Sheikh Gumi Central Market) has increased significantly, now ranging from N350 to N400, up from the previous N200 to N250.

Fuel queues grounded activities in Niger State as motorists spent hours at filling stations waiting to purchase the product that was not available

In the past, the scenario was that there would be fuel with few motorists queuing to purchase the product.

In Minna the state capital, residents waited for hours for the product only to find out later that the product was not even available.

A motorist, Kunle Afolabi who spoke to The PUNCH said he had been to about two other stations before coming to the third to find out the situation was still the same.

“The situation is the same in all the fuel stations, there is no fuel anywhere and the pump price has risen again. We have been buying it for N850 for some time now but it is now N950 in most of the fuel stations. Even the Federal Government station which used to be less than N700 is now N850.

“In most of the fuel stations, the attendants will tell you that they are expecting a supply of the product. After spending hours waiting for fuel, motorists have no option than to leave. This thing is disturbing. The government does not seem to have any solution to the problem,” he said.

The PUNCH visited the fuel stations at the Mobil junction where there are several stations, including the Mobil, Total, A.A Rano, Shafa, Eternal, and Optima, among others. Few vehicles were seen waiting endlessly for the stations to commence the sale of fuel.

Following an observation conducted by our correspondent in Bauchi, it is confirmed that queues had returned to filling stations across the state.

While most filling stations were closed, the ones that dispensed petrol in Bauchi sold it at about N900/litre.

In Abuja, residents stated that fuel queues have plagued the city for about two months, leaving commuters and drivers stranded.