July 30, 2024- The ongoing fuel crisis in Nigeria has driven the black market rate for petrol to between N1,300 and N1,600 per litre, leaving many unable to afford the essential commodity. This surge in prices comes as fuel marketers attribute the scarcity to supply problems faced by the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Reports indicate that some gas station employees are exploiting the situation by charging up to N2,000 for assisting customers, exacerbating the crisis. Douglas Stephen, a local businessman, shared his frustration, noting that despite starting his day early to secure fuel, he still spent an hour in line.
According to BusinessDay, the landing cost of gasoline exceeded N1,000 on Monday, suggesting that the federal government is subsidizing the product. Zarma Mustapha, deputy national president of IPMAN, explained that the current landing cost is significantly higher than the pump rates, which range from N660 to N800 per litre across Nigeria. He stated, “You cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money.”
Mustapha pointed to supply challenges as the primary cause of the shortage, with IPMAN members unable to receive products. The Nigerian National Petroleum Company (NNPC) Limited confirmed that difficulties with several vessels’ discharge operations are contributing to the distribution problems. Olufemi Soneye, NNPC’s chief corporate communications officer, assured that the company is working around the clock with all stakeholders to resolve the situation and restore normalcy.
In related news, Nigerian billionaire Femi Otedola has responded to President Bola Tinubu’s directive for NNPC to sell crude oil to the Dangote Refinery and other upcoming refineries in naira. This move aims to stabilize both the pump price of refined fuel and the dollar-naira exchange rate.
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