Fuel scarcity is re-emerging in Lagos and other parts of Nigeria following a significant hike in petrol prices by private depot owners. The ex-depot price of petrol has surged from N630 to N720 per litre, causing widespread concerns and disruptions.
This price increase has led to deepening fuel shortages in Abuja and nearby states, with some filling stations selling petrol at prices as high as N900 per litre. Many filling stations in Lagos, Ogun, and other states have run out of stock, unable to afford the high-priced fuel from private depots.
Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that many stations remained closed because they had no fuel to sell. He emphasized that the Nigerian National Petroleum Company Limited (NNPC), the sole importer of petrol, should clarify the current supply situation.
“Those that shut their stations do not have fuel to sell. When you don’t have fuel, you cannot open your station,” Fashola stated. “Currently, independent marketers cannot buy what the private depots are selling at N715 to N720 per litre. How much will marketers sell the product for? It’s too costly for them, hence the shutdown of many stations.”
Previously, private depot owners sold petrol to independent marketers at N630-650 per litre, while NNPC sold to major marketers at prices below or around N600. IPMAN has repeatedly urged NNPC to supply petrol directly to independent marketers, but this request remains unmet.
Despite the supply challenges, Fashola urged Nigerians to avoid panic buying, suggesting that this would help ensure the available fuel goes around.
According to multiple officials, the NNPC has prioritized fuel supply to the Federal Capital Territory, Abuja, where fuel queues first appeared on Friday. Consequently, trucks were redirected to Abuja over the weekend, leaving Lagos and other areas with reduced supply.
Reports indicate that Nigeria’s debt to petrol suppliers has more than doubled since April, exceeding $6 billion, making it increasingly difficult for the NNPC to cover the gap between fixed pump prices and international fuel costs. Although the NNPC has denied these claims, the financial strain remains evident.
The impact of the price hike is evident across the country. In Lagos, long queues are forming at fuel stations, and prices have risen significantly. For instance, NNPC outlets sell fuel at N568 per litre, while independent stations charge between N750 and N800 per litre.
In Ogun State, petrol prices range from N700 to N800 per litre, with similar trends observed in Ekiti State, where prices range from N650 to N760 per litre. In Edo State, independent marketers sell petrol at N700 to N730 per litre, while major marketers offer it at N660 to N680 per litre.
In Sokoto, fuel scarcity has led to long queues at the NNPC mega station, which sells petrol at N620 per litre. Other stations charge between N850 and N900 per litre. In Kaduna, prices range from N720 to N800 per litre, with significant disparities between NNPC and independent stations.
The fuel scarcity is also severe in Abuja, with some remote stations selling petrol at N900 per litre. Attendants have confirmed that the ex-depot price of petrol has increased to over N710 per litre, making it difficult for independent marketers to maintain a reasonable profit margin.
Abubakar Maigandi, the National President of IPMAN, noted that private depot owners have raised the ex-depot price to N710 per litre, while NNPC retail stations sell at N617 per litre. This disparity creates challenges for independent marketers, leading to fuel shortages and long queues.
The fuel scarcity crisis highlights the need for a more robust and equitable fuel distribution system in Nigeria. As the situation unfolds, Nigerians are urged to remain calm and avoid panic buying to mitigate the impact of the shortages.
