Fuel Scarcity Worsens in Nigeria: Petrol Marketers Suffer as Prices Soar
Petrol stations nationwide are experiencing decreased patronage as the price of petrol has skyrocketed to over ₦1,000 per litre. Moreover, petrol marketers are struggling to cope with the new reality, which has led to reduced workforce and scaled-back work shifts.
Indeed, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, shared insightful remarks on Channels Television’s “The Morning Brief.” He was accompanied by Ukadike Chinedu, a spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Gillis-Harry emphasized that the current situation is challenging for marketers, as the cost of purchasing 45,000 liters of fuel has increased dramatically. “Today, we have to pay about 49 million naira to buy the same product we used to acquire for less than 8.5 million naira a couple of months ago,” he explained. He also highlighted the lack of support from financial institutions, adding that high borrowing costs and low consumer purchasing power exacerbate the sector’s woes.
In related news, Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, stated that his principal is rectifying the errors made by his predecessor, Olusegun Obasanjo. Onanuga made these comments on Channels Television’s Politics Today, noting that President Tinubu has never ascribed himself to the position of Minister of Petroleum, unlike Obasanjo, who admitted to making a mistake.
The presidential spokesman also mentioned that the Petroleum Ministry has two ministers supervised by President Tinubu.
As the high cost of living continues to bite, Nigerians are now paying around N105,000 for a 50kg bag of locally-produced parboiled rice, exceeding the new minimum wage of N70,000. This significant rise in rice prices follows the removal of the petrol subsidy and the devaluation of the naira, resulting in a 123% surge over the past year.
Imported rice has also become more costly, with a 50kg bag now priced at N130,000, according to a recent market survey. The steep increase in rice prices highlights the limited ability of smallholder farmers to meet local demand, due to challenges such as insecurity, high input costs, and logistical difficulties.
