Nigerians Groan As Fuel Scarcity, Price Hike Cripple Economic Activities

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 In Nigeria, the perennial issue of fuel scarcity has once again reared its head, intertwining with a sharp increase in fuel prices to create a crippling blow to economic activities across the nation. As queues lengthen at fuel stations and prices soar, the collective groan of Nigerians echoes a tale of hardship and frustration. This dire situation not only impacts daily commutes and essential services but also serves as a harsh reminder of the broader economic challenges faced by the population.

In Nigeria, a country known for its vibrant economy and bustling streets, a cloud of uncertainty hangs over the country as fuel scarcity and abrupt price hikes have suffocat­ed it in the last two weeks. The situation has caused ripples of distress throughout various sec­tors, effectively halting economic activity and exacerbating its citi­zens’ daily struggles.

Queues at petrol stations have become a common sight among Nigerians, reminiscent of a by­gone era when patience was a commodity in and of itself. Fuel scarcity disrupts not only per­sonal transportation but also the movement of goods and services required for business operations. This disruption in supply chains has a cascading effect, causing delays, increased operational costs, and a significant decrease in productivity.

The unexpected increase in fuel prices has dealt a crippling blow to an already burdened pop­ulation, the majority of whom rely heavily on public transport for their daily commutes. This fuel scarcity and a sharp increase in cost have caused a domino ef­fect, skyrocketing transport fares and raising the cost of living for the average Nigerian. As a result, disposable incomes fall, bringing many families to the brink of fi­nancial ruin and extreme poverty.

Furthermore, small and me­dium-sized businesses, the back­bone of Nigeria’s economy, are dealing with the consequences of this crisis. With rising operation­al costs and logistical challenges, businesses are at a crossroads, forced to make difficult deci­sions to stay afloat. Layoffs are also looming, threatening many people’s jobs and contributing to the country’s burgeoning unem­ployment crisis. This fuel crisis has far-reaching consequences that go beyond economics, perme­ating society and testing the Ni­gerian spirit is resilience. Daily routines are disrupted, plans are put on hold, and many people’s hopes and dreams are clouded by a palpable sense of uncertainty.

In the face of such adversity, Nigerians have demonstrated re­markable fortitude, weathering the storm with resilience honed over years of navigating difficult situations. However, there is an undeniable need for long-term solutions and proactive govern­ment interventions. Efficient resource management, strategic planning, and open communica­tion are essential for alleviating citizens’ hardships and revitalis­ing the economy.

Nigerians are struggling with fuel shortages, with queues form­ing in major cities. The fuel short­age has resulted in increased transportation costs in the coun­try, where many people rely on public transportation.

Authori­ties blame the current shortage on supply disruptions caused by logistical challenges. Queues for fuel stations stretched up to three kilometres (1.8 miles) in some cit­ies, including Abuja, the national capital.

Nigeria is one of Africa’s larg­est crude oil producers, but petrol shortages are common, owing to frequent strikes and supply dis­ruptions. Nigeria’s state oil firm accused fuel companies of profit­ing from the current situation, as it has done in the past.

Nigeria is heavily reliant on imported fuel due to underper­forming refineries. The largest refinery in Africa has recently opened in Lagos, Nigeria’s eco­nomic hub, and is expected to increase refining capacity. How­ever, the privately owned facility continues to produce only diesel and aviation fuel.

The cost of fuel at many Abuja gas stations has already risen by more than 15% from the usual 675 Naira (50 cents) per litre. Prices varied in other cities across the country. In some parts of Abu­ja and Lagos, half of the roads were congested with private car owners and taxi drivers, some of whom had parked near petrol sta­tions overnight to get fuel early.

Oil marketers have stated that they do not have details on the logistical challenges that the Ni­gerian National Petroleum Com­pany Limited (NNPC) claims are to blame for the current low supply of products nationwide. Fresh petrol scarcity resurfaced on Wednesday last week and has worsened, leaving Nigerians to deal with the consequences.

Scarcity has caused prices to skyrocket in Lagos, reaching up to N800 per litre at IPMAN-affil­iated stations and N1,200 on the black market. Before the scarcity, petrol was sold at MEMAN sta­tions for around N610 per litre.

Some filling stations in Mary­land, Ikeja, Agege, Iyana Ipaja, and other outskirts of Lagos charge up to N900 per litre for petrol. In some states, the product costs more than N1,000 per litre at filling stations. Even at that rate, most filling stations have closed their doors due to a lack of product.

Following the scarcity of the product, economic activity has been forced to its lowest ebb, caus­ing untold hardship for residents of Gombe and surrounding areas.

The majority of filling station managers told our correspondent that their trucks had been wait­ing for the product in Lagos or Port Harcourt for several weeks. While the hardship continues, it has provided an opportunity for a few black market operators to do brisk business, causing com­muters, motorists, and other Ni­gerians to lament the situation.

Our correspondent reports that fuel is currently sold in Gombe State at N1,000 and N1,100 per litre in a few operating filling stations and N1,600 and N1,700 per litre in black markets, while NNPC Mega filling stations op­erate with sharp practices. Our correspondent learned from a re­liable source at the main NNPC Mega filling station on Sabon Layi Street in Gombe that they only sell to their black market cronies late at night.

Confirming the situation, our correspondent observed that no fuel was sold during the day, and the station manager refused to re­spond to the allegations, as some residents who spoke, expressed dismay and heartbreak over the deplorable situation.

According to Danladi Bakam, the new price has made life un­bearable, adding, “Fuel now costs N1,000 or N1,100 per litre, while black marketers charge N1,600 or N1,700 per litre.”

Mohammed Mohammed, a commercial motorbike operator, stated, “We are trying to make money from our customers.” We are suffering, and, unfortunate­ly, we have to buy fuel at N1,400 because we cannot wait in long lines at filling stations.”

Responding to questions, Ibra­him Fika, Gombe State Secretary of the Nigeria Labour Congress (NLC), said the situation has been dire for workers, particularly civ­il servants. According to him, the current scarcity has made many people’s lives more difficult.

“The fuel is not even available, let alone managing the limited resources you have,” he lamented.

“The situation has become un­bearable; we have no electricity or fuel; how will we survive? For weeks, the power situation has deteriorated to the point where we are unable to purchase fuel for our generators,” one Hussaini Gusau lamented.

According to Ibrahim Yusuf, Chairman of the Gombe Net­work of Civil Society (GONET), the recent petrol scarcity, exac­erbated by the actions of petro­leum industry stakeholders, has increased the burden on Nigeri­an citizens, exacerbating already difficult circumstances. He stated that the shortage of petrol has disrupted transportation and water supply, affecting both indi­viduals and businesses and has contributed to an increase in the cost of living.

“The removal of oil subsidies has also had a significant impact on exacerbating existing prob­lems, resulting in widespread inflation, a sharp drop in living standards, and a dire scarcity of essentials such as food and wa­ter. The removal of oil subsidies has caused a crippling increase in inflation, rendering ne­cessities unaffordable for many Nigerians.

“The common people are facing dire circumstances, struggling to obtain even the most necessities. Fam­ilies are going hungry, chil­dren are malnourished, and communities are suf­fering,” Ibrahim stated em­phatically.

There is no queue at any of Edo State’s petrol stations, except for price increases that occur almost every minute and are at the discretion of the retailers.

While queues have yet to form in cities such as Benin City, Edo State, on Monday, April 29, 2024, the pump price of Premi­um Motor Spirit (PMS) in almost all filling stations was N690 or N700 in most cases, except NNPC Mega stations, where they have been selling for N591 since the new price increase as a result of subsidy removal.

However, by Tuesday, the last day of April, mo­torists awoke to find that all filling stations had ad­justed their pumps to N720 per litre, which automati­cally increased queues at the Mega Filing Station and other NNPC retail outlets across the state. By Wednesday evening, all filling stations had raised their pump prices to N750, resulting in chaos at all NNPC Mega filling sta­tions.

Mr Samson Idiale, the manager of Atoms Filling Station in Benin, told our correspondent that he sus­pected the current increase in Edo State was linked to the ongoing scarcity in Lagos and other parts of the country, which he said had yet to be experienced in Edo and Delta States. Also speaking, Paul Osas Iyobosa, an independent marketer and owner of Paulo Filling Station, said the current fuel price in­crease in Edo State was un­expected because, accord­ing to him, “we are selling the products the way we bought them, and we are increasing our products almost every six hours, which is how they are in­creasing it at the depots where we lift products.”

The NNPC, for its part, has blamed the current sit­uation, which has harmed businesses and their exis­tence, on logistical issues. Olufemi Soneye, the com­pany’s spokesperson, stated last week that the challeng­es had been resolved. How­ever, nearly a week later, oil marketers have stated that they are still unaware of the nature of these chal­lenges. They also denied allegations that they were hoarding the products.

“Do you blame oil mar­keters for the current sit­uation? If NNPC gives us products, we will sell them because we are business­people. We are in this busi­ness to make money, so we will not keep products in our tanks if we have any,” Akin Akinrinade, Chair­man of IPMAN Satellite Depot in Lagos, told a tele­vision station.

“There is no petrol be­cause NNPC is not provid­ing us with fuel. According to them, they do not have smaller vessels to transport fuel from larger vessels. Others claim it is because of bridging claims. They are not telling us the truth because, as I speak, I do not have any fuel in my depot.

“I am going around beg­ging for fuel,” he explained.

“They stated that they have a logistics issue and 240 million litres in stock to distribute. But that is what they have told us since last weekend. They stated that the logistics challenges had been resolved, but they did not specify which type of logistics problem they were experiencing. For the time being, NNPC stations are the primary sellers, with only a few others receiving supplies. But you are aware that our members have the most stations nationwide. If they provide IPMAN station products, you will notice that the queues dis­appear immediately.”

Tunji Oyebanji, a former chairman of the Major Oil Marketers Association of Nigeria (MOMAN), now MEMAN, and CEO of Mo­bil Oil, now 11 Plc, claimed that NNPCL was starving oil marketers of products.

The irony of it all is that the Abuja Chamber of Commerce and Indus­try (ACCI) has complained that ongoing fuel shortag­es are impeding business operations in the country. In a statement released on Thursday, President Eme­ka Obegolu expressed his concern and urged the Federal Government to address the issue as soon as possible. He noted that due to the shortages, some unscrupulous individuals have raised fuel prices in various regions, resulting in higher transportation and logistics costs.

He did, however, express optimism that the soon-to-be operational Dangote refinery, along with other new refineries, would put an end to this negative trend, making Nigeria self-sufficient and less re­liant on imported fuel. “The fuel shortage has made it more expensive for indi­viduals and businesses to transport goods and con­duct transactions, reducing the ease of doing business. The current fuel scarcity is harming businesses and stifling economic activity.

“We urge the govern­ment to prioritise address­ing the root causes of this problem,” he said.

The current fuel scarci­ty has exacerbated Nige­rians’ hardships on multi­ple fronts. It will have an impact on daily commute times, access to essential services, and the overall cost of living. Further­more, it will continue to de­generate economic activity, exacerbate inflation, and foster a sense of insecurity and uncertainty among the population.

Addressing fuel scarcity in Nigeria requires a com­prehensive approach that addresses the underlying causes, such as inefficient distribution systems, sub­sidy challenges, and refin­ing capacity constraints. Government policies, in­frastructure investment, and energy sector diversi­fication could all play im­portant roles in reducing fuel scarcity and easing Nigerians’ hardships.

SOURCE: Independent