The petrol scarcity in Nigeria has taken a turn for the worse, with long queues and closed fuel stations becoming a common sight. The crisis has been attributed to a combination of factors, including a whopping $6 billion debt owed to petrol suppliers and a crippling foreign exchange rate.
According to industry sources, the debt has placed a significant strain on the Nigerian National Petroleum Company Limited (NNPC), making it difficult for the company to sustain the importation of petrol. The situation has been further complicated by the high foreign exchange rate, which has increased the landing cost of petrol to over N1,100 per liter.
Independent marketers, who operate the majority of fuel stations in the country, are struggling to access products due to the high costs. They have been forced to buy from private depot owners at exorbitant rates, leading to a surge in prices.
The NNPC has acknowledged the debt and is working to address the issue. However, the company’s financial forecast indicates that the total petrol subsidy bill from August 2023 to December 2024 will reach N6.884 trillion.
The scarcity has had far-reaching economic implications, including a strain on the foreign exchange market, low crude oil production, and a high monetary policy rate. Experts have called for comprehensive sectoral reforms to enhance the business environment and attract investments.
In the meantime, Nigerians continue to bear the brunt of the scarcity, with many struggling to access fuel for their daily needs. The government has been urged to take decisive action to address the crisis and restore normalcy to the petroleum sector.
Vanguard
