The fuel scarcity in Nigeria has worsened, with the pump price of petrol inching towards N1,405 per litre. Industry operators attribute the crisis to the federal government’s inability to sustain subsidy payments, leading to a shortage in supply. The Nigerian National Petroleum Company Limited (NNPCL) is struggling to meet the nation’s fuel demands, with some suppliers unwilling to deliver products on credit.
The current transactional analysis puts the landing cost of petrol at N1,205.52 per litre, excluding transportation costs and marketers’ margins. This has led to speculation of a compromise pump price of N1,000 per litre or more. However, oil marketers have stated they are not considering importation due to foreign exchange and high-cost fund issues.
The situation has resulted in long queues at filling stations, increased black market sales, and a hike in transportation fares. Experts have urged the federal government to collaborate with local refineries to process crude oil for domestic use and implement the Petroleum Industry Act to streamline operations in the downstream sector.
Dangote Refinery has commenced test runs for petrol production, promising to ease Nigeria’s reliance on imported oil products. However, the government’s inability to pay outstanding debts to importers and allow fuel prices to return to market levels has exacerbated the crisis.
