People in Nigeria have been dealing with ongoing fuel shortages and huge lineups at gas stations all around the country for almost a year now, after the government’s decision to phase off fuel subsidies.
Even though the government has previously pledged to increase market competitiveness and efficiency, this protracted problem exposes the intricacies and difficulties in the nation’s gasoline supply chain.
According to what Naija News learns, President Bola Tinubu tried to decentralize fuel imports under the Petroleum Industry Act 2021 by taking authority away from the Nigerian National Petroleum Company Limited (NNPCL) and giving it to the private sector on May 29, 2023.
But the change hasn’t exactly gone well. The NNPCL is compelled to reclaim its position as the principal supplier as private enterprises find it difficult to obtain foreign exchange for fuel imports. Notwithstanding the NNPCL’s guarantees of a consistent fuel supply, the actual situation differs.
petrol lines have become commonplace in big cities like Lagos and Abuja, as many stations are running out of petrol. The situation has gotten worse due to logistical problems including intermittent supply and operational outages at different filling stations, which are brought on by the higher haulage charges that tanker drivers are demanding.
The impact on prices has been stark. In some areas of Lagos, petrol prices remain fixed, while in others, such as the Lagos-Ibadan Expressway, prices fluctuate significantly, reaching as high as ₦645 per litre. Similar price hikes are observed in Abuja, where fuel costs vary widely, with some stations charging up to ₦724 per litre.
The NNPCL’s spokesperson, Olufemi Soneye, urges calm and discourages panic buying. He attributes the tight supply to “logistical issues” that he claims are being resolved. However, industry insiders and the Independent Petroleum Marketers Association of Nigeria (IPMAN) tell a different tale, pointing to irregularities in supply that hint at deeper systemic problems.
All around the nation, these disruptions are having an effect. In Abuja and other large cities, commuters are either compelled to pay higher fees or become stranded due to the lack of cabs and buses. In addition to making daily living more difficult, this shortage has increased inflationary pressures and put further strain on Nigerian households’ budgets.
Filling stations regularly close or stockpile petrol in equally needy places like Kaduna and Maiduguri in the hopes of selling it at a greater price during the unpredictability, according to a report by LEADERSHIP.
As a result, there is a surge in the black market, where consumers bear the brunt of exorbitant prices—up to ₦1,000 per litre. Despite occasional reassurances from government officials and the NNPCL, the end to Nigeria’s fuel difficulties looks far.
A increasing number of people are calling for fair and dependable gasoline supply systems as the nation faces difficulties, underscoring the necessity of significant reforms in the petroleum industry.
