Petrol scarcity grips Nigeria as black market booms

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Nigeria is facing a nationwide petrol scarcity, leading to long queues at filling stations and a surge in black market prices.

Supply and Demand Issues

The Independent Petroleum Marketers’ Association of Nigeria (IPMAN) blames the scarcity on a lack of product at depots, particularly in Lagos. Marketers at the Apapa depot in Lagos allege a drop in imports and preferential treatment for trucks delivering fuel to Abuja. This has created a supply shortage in Lagos and surrounding areas.

The Nigerian National Petroleum Company Limited (NNPCL) maintains there is sufficient product availability, but offers no explanation for the discrepancies reported by marketers.

Impact on Consumers

The scarcity has caused significant hardship for motorists. Many filling stations are closed, and those open have long queues. NNPC outlets, although selling petrol at the official price of N617 per litre, still have longer queues compared to stations with inflated prices.

The high cost of petrol is particularly burdensome for taxi drivers and commercial motorcyclists who rely on it for their livelihoods. Some motorists resort to sleeping at filling stations overnight to secure a place in line.

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Black market prices for petrol have skyrocketed to as high N1,200 per litre in some locations, taking advantage of desperate consumers. This increase far exceeds the official price and further strains household budgets already impacted by inflation.

Community Protests and Black Market Boom

Communities in Cross River State protested against petrol stations selling at N1,200 per litre, forcing some stations to close.

Black market vendors report brisk business due to the scarcity. They capitalize on their connections with petrol station attendants to obtain fuel and resell it at inflated prices. Some black market vendors see this scarcity as an opportunity to save money to pursue their entrepreneurial dreams.

Uncertainties Remain

The situation remains unclear with conflicting reports from marketers and the NNPCL. Motorists face continued challenges in accessing petrol at reasonable prices. The potential for a worsening supply shortage in Lagos adds further concern.