Petrol Price Hike Sparks Widespread Queues Across Nigeria

  Petrol Price Hike Sparks Widespread Queues Across Nigeria

9th July 2024

By Okechukwu Nnodim

 Introduction

The ongoing petrol crisis in Nigeria has deepened, causing widespread queues at filling stations and skyrocketing prices for Premium Motor Spirit (PMS). As of Monday, motorists in Abuja and surrounding states, including Lagos, have been spending hours in line, with prices soaring as high as N1,100 per litre. The scarcity, according to marketers, may persist until the weekend.

Rising Costs and Black Market Exploitation

The crisis has led to significant exploitation by black marketers, who have increased their prices to between N1,000 and N1,100 per litre. Simultaneously, some retail outlets have hiked the pump price to N900 per litre, especially in Abuja, Nasarawa, and Niger states.

 NNPC’s Explanation

The Nigerian National Petroleum Company Limited (NNPC) has attributed the queues to recent thunderstorms and logistical challenges that disrupted operations at fuel loading jetties. Despite these issues, the NNPC assured that they are collaborating with stakeholders to resolve the problem and clear the queues.

 Industry Reactions

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that NNPC is addressing the issue but cautioned that the queues might not vanish immediately, especially in areas far from major depots.

"Once loading starts, it takes several days to clear the queues. Filling stations in Abuja receive products from Lagos, Oghara, Warri, Port Harcourt, or Calabar, which involves a turnaround time of more than three days," Gillis-Harry explained.

### Underlying Issues and Inadequate Supply

A prominent dealer in the downstream oil sector, speaking anonymously, insisted that the root cause is an inadequate supply of PMS by NNPC, noting that the queues have now extended to Lagos.

"The product is scarce. If the product were available, people would lift it, and there wouldn’t be queues. Therefore, the situation might persist until the weekend," the dealer stated.

He further noted, "I don’t foresee the queues clearing soon, especially not tomorrow, because depots are not loading. There's immense pressure on me to include people in the supply program, but without sufficient product, it's impossible."

### NNPC’s Detailed Explanation

NNPC’s spokesperson, Olufemi Soneye, elaborated on the situation, attributing the queues to recent thunderstorms that disrupted ship-to-ship transfers of petrol between mother and daughter vessels.

"The adverse weather conditions have affected berthing at jetties, truck load-outs, and transportation of products to filling stations, causing a disruption in station supply logistics," Soneye stated.

He emphasized that compliance with the Nigerian Meteorological Agency regulations is mandatory to avoid severe dangers associated with loading petrol during rainstorms and lightning. Additionally, the NNPC noted that flooding of truck routes has constrained the movement of PMS from coastal corridors to Abuja.

 Efforts to Resolve the Crisis

The NNPC is actively working with relevant stakeholders to overcome these logistical challenges and restore a seamless supply of petrol to affected areas. Loading has resumed in regions where these challenges have eased, and the NNPC expects the situation to improve in the coming days.

The company has urged motorists to avoid panic buying and hoarding of petroleum products to facilitate a smoother resolution of the crisis.

 Regional Impact

In Ogun State, PMS was sold at between N700 and N750 per litre at most independent filling stations on Monday. However, several stations did not sell petrol to customers, while those operated by NNPC sold at N580 per litre, resulting in long queues.

In Sokoto State, the fuel scarcity persisted, with pump prices ranging from N900 to N950 per litre. Most independent marketers did not dispense petrol, leading to increased frustration among residents.

A motorist, Salami Isa, expressed his concerns, "The fuel issue is escalating. Everything is becoming too expensive, and we still have to pay exorbitant prices for fuel."

 Situation in Delta State and Other Regions

In Delta State’s capital, Asaba, PMS was sold at prices between N730 and N790 per litre. Major marketers such as Matrix, Northwest, and RainOil sold petrol for N730, while others priced it at N765. In surrounding areas like Ibusa, Issele-Uku, Issele-Azagba, and Agbor, prices ranged from N765 to N790 per litre without queues. However, the NNPC mega station along the Benin-Asaba Express sold at N590 per litre, resulting in long lines.

In Ilorin, Kwara State, there were no queues on Monday, with petrol prices between N600 and N750 per litre.

 Conclusion

The current fuel scarcity and price hike in Nigeria have caused widespread queues and frustration among motorists. While the NNPC is taking steps to address the situation, it may take several days before normalcy is restored. The collaboration between NNPC, the government, and downstream oil sector operators is crucial to finding a lasting solution to the recurring fuel scarcity in Nigeria.