Despite a recent price hike, fuel shortages persist across Nigeria. The government and experts propose solutions to restore stability in the petrol supply chain.mynewslive
Petrol Price Hike Fails to Ease Supply Shortages as Scarcity Persists in Nigeria
Despite last week’s price hike for Premium Motor Spirit (PMS), commonly known as petrol, Nigeria is still grappling with widespread fuel shortages, long queues, and black market activities. Several petrol stations in Lagos, Abuja, and surrounding areas remain shut, and independent marketers are struggling to receive adequate fuel supplies.
Prices at independent petrol stations have soared, with some selling petrol at between ₦900 and ₦1,000 per litre, while black market sellers are charging between ₦1,200 and ₦1,400 per litre.
FG Defends Petrol Policy
President Bola Tinubu defended the removal of fuel subsidies, stating that it was necessary to free up budgetary resources for critical investments in infrastructure and social services. Speaking at the 17th annual Chartered Institute of Bankers of Nigeria (CIBN) banking and finance conference, Tinubu, represented by Vice-President Kashim Shettima, assured Nigerians that reforms were underway to stabilize the economy and reduce inflation.
25 Million Liters Through Dangote in September
Minister of Finance, Wale Edun, confirmed that the government plans to alleviate the transportation costs by supplying 25 million liters of petrol starting in September through the Dangote refinery. Additionally, the government is focusing on biofuel buses and CNG conversion kits to reduce dependence on petrol.
Marketers Explain Why Shortages Persist
Petroleum marketers attribute the continued scarcity to challenges with securing the necessary capital to purchase fuel and recalibrating pumps following the price hike. They are also awaiting agreements between Dangote Refinery and NNPC Limited on the off-taker price.
Marketers stress that unless supply improves, they may be forced to negotiate directly with Dangote Refinery.
Experts Offer Solutions
Experts have proposed several solutions to resolve the ongoing petrol crises. Mazi Colman Obasi, President of OGSPAN, emphasized the need for increased and sustainable supply, while others called for addressing the issues preventing Dangote Refinery from boosting output. Experts also stressed that full deregulation is necessary to encourage more participation in the downstream sector.
Conclusion
As the Federal Government continues to defend its fuel subsidy removal and reform efforts, petrol shortages remain a significant challenge. Stakeholders are calling for long-term solutions to stabilize fuel supply and avoid further disruptions.
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