For the second time in six months, residents in two of Nigeria’s biggest cities, Lagos and Abuja, are experiencing long queues at fuel stations as several fuel outlets in the states have ceased operations. This is because of the suspension of operations by some members of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Why there is fuel scarcity
- The Chairman of IPMAN, Lagos Satellite Depot, Ejigbo, Mr. Akin Akinrinade, who narrated the ordeal of petroleum marketers in the country stated that some retailers shut their stations because they were operating at a loss.
- According to Mr. Akinrinade, IPMAN members paid over N1 billion to the Pipelines and Product Marketing Company (PPMC) in October 2021 for the supply of petroleum products.
- PPMC is yet to supply the product to the retailers, forcing the latter to patronize private depots for petroleum products while also servicing borrowed funds from commercial banks for their money with PPMC.
- The private depots then increased the price of Premium Motor Spirit (PMS) from N148.17 to N162 per litre while the fixed pump price of PMS by the federal government is N165 per litre leaving the retailers with a gain of N3 per litre exclusive of the cost of operation.
What they are saying
IPMAN Boss, Mr. Akinrinade, recommended that the federal government order the private depots to revert to the old price for PMS or “deregulate the downstream sector to allow market forces to determine the price.” He also recommended that the federal government resume the pumping of products through the PPMC Ejigbo depot.
- Mr. Akinrinade then called on the federal government to hasten the rehabilitation of the country’s refineries.
In case you missed it
- The last time there was fuel scarcity in Nigeria was in February 2022 when the Nigerian National Petroleum Corporation (NNPC) imported 170.25litres of adulterated fuel from suppliers in Europe. In that time, black marketers sold PMS at over N400 per litre.
- Last month, the federal government boasted that NNPC had 2.65 billion liters of fuel in storage, which can meet the country’s demand for 47 days.
- At the time of this filing, there were reports of fuel scarcity in Lagos, Abuja and Oyo.