Petrol consumers are facing significant challenges due to soaring prices, with Premium Motor Spirit (PMS) nearly reaching N400 per litre over the weekend. A market survey indicated that stations affiliated with the Major Oil Marketers Association of Nigeria (MOMAN) were selling petrol at approximately N190 per litre, while those belonging to the Independent Petroleum Marketers Association of Nigeria (IPMAN) had raised their prices to between N320 and N340 per litre. Mike Osatuyi, the National Controller of Operations at IPMAN, stated that prices are not expected to reach N400 per litre, as his members currently purchase products at N280 per litre from depots.
In response to the ongoing fuel scarcity, President Buhari established a 14-member committee, which he will lead, to find solutions to the crisis. Osatuyi revealed that the committee is set to be inaugurated this week and expressed optimism about its potential impact. He emphasized that if the Nigerian National Petroleum Company (NNPC) were to supply products directly to marketers, bypassing third parties, prices could significantly decrease. Osatuyi pointed out that IPMAN members account for 80 percent of the market, asserting that direct access to products would benefit consumers. He criticized the current subsidy system, claiming it primarily benefits the NNPC rather than the Nigerian populace.
Osatuyi further alleged that the NNPC has been avoiding communication with oil marketers and has failed to provide solutions to the fuel scarcity issue. He expressed frustration over the new Managing Director of NNPCL Retail, Hubbs Stockman, not agreeing to meet with them to discuss the crisis. According to Osatuyi, the establishment of the steering committee indicates that the NNPC has not fulfilled its responsibilities regarding fuel supply. He described the current situation in the downstream sector as chaotic, with NNPC unable to import fuel, leading to widespread shortages. He criticized the lack of transparency and communication from NNPC, questioning their reluctance to engage with marketers.
The fuel scarcity has persisted since the last quarter of the previous year, with prices rising from N165 to over N300 per litre. As of Sunday, heavy traffic congestion was evident on Lagos highways due to motorists queuing for petrol, while black marketers were seen selling fuel in kegs. Sources at the depots explained that price increases are influenced by daily fluctuations in foreign exchange rates. They noted that if forex rates change daily, then the costs associated with importing fuel must also adjust accordingly.
In light of the ongoing crisis, the Nigerian Youth Congress for Peace and Development has called on the President to disband the leadership of the NNPC to effectively address the fuel scarcity. The group expressed concern over the hardships caused by the fuel shortage and urged the President to suspend all election processes until the issue is resolved. In a statement issued in Jos, signed by President Ebi Dennis and Secretary Abdul Idi Ladduga, the youth organization gave the President a two-week ultimatum to meet their demands or face protests from Nigerian youths.
The statement highlighted the distressing impact of fuel scarcity on Nigerians, criticizing the recent price adjustments made by the NNPC without adequate consultation with stakeholders in the oil and gas sector. They expressed surprise that the Minister of State for Petroleum Resources, Chief Timipre Sylva, learned of the price increase through rumors, prompting him to issue a statement denying the adjustment and assuring the public that President Buhari had not approved any price hikes. The Minister attributed the situation to “mischief makers” attempting to undermine the President’s achievements in the oil sector.
In response to the price adjustments, the youth organization sent members to visit NNPCL retail stations to verify current prices. They discovered that NNPCL had indeed raised its pump prices, with many independent marketers selling petrol for over N400 where available. The group questioned whether the NNPC still reports to the Minister of State for Petroleum and whether it has fallen under the influence of those seeking to discredit the President.
Osatuyi reiterated that removing fuel subsidies and deregulating the market are essential to resolving the fuel scarcity crisis. He argued that a free market would allow marketers other than the NNPC to supply products, emphasizing the need for immediate action as the government plans to remove subsidies in June. Olumide Adeosun, Chairman of MOMAN, echoed this sentiment, stating that deregulating the downstream sector would eliminate fuel scarcity. He pointed out that prolonged subsidies have weakened Nigerian institutions’ ability to manage the current energy crisis, leading to disruptions in the supply chain and resulting in long queues at fuel stations.
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