The ongoing fuel crisis in Nigeria continues to worsen as disagreements over pricing between the Nigerian National Petroleum Corporation Limited (NNPCL) and the Dangote Group have left thousands of trucks stranded at depots, unable to load Premium Motor Spirit (PMS), commonly known as petrol.
Despite assurances from the Federal Government that fuel would be available by the weekend, loading has not commenced, leading to persistent queues in major cities across the country.
Reports indicate that although PMS vessels have arrived at NNPC’s Apapa and Port Harcourt depots, independent marketers are yet to begin loading.
Mustapha Zarma, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, stated, “Maybe the improvement in supply will start tomorrow or Sunday but as of yesterday (Thursday) and today (Friday), there has not been much loading of products.” He added that the situation might persist until Monday, prolonging the fuel shortages.
A significant factor contributing to the crisis is the ongoing dispute over fuel pricing. A presidential aide, who requested anonymity, suggested that the Dangote Refinery was reluctant to set prices to avoid public backlash, noting, “The petrol price cannot be less than N1,000; that was why Dangote decided to push it to the government.”
Meanwhile, Dangote Group has maintained that the PMS market in Nigeria is strictly regulated by the government, and they cannot set the product’s price. Contrarily, NNPC claims that the market has been deregulated, with prices to be determined by market forces, as stipulated by the Petroleum Industry Act.
Industry experts warn that if NNPC and the Federal Government allow market forces to set the price, petrol could rise to as much as N1,000 per litre, sparking concerns over affordability for the average Nigerian. In response, the Organised Private Sector (OPS) has cautioned that this approach could lead to significant economic volatility and inflation, urging a more gradual and managed approach to deregulation.
The ongoing crisis has led to widespread disruptions, with many Nigerians abandoning their cars for bicycles, public transport, or trekking to cope with the skyrocketing fuel costs. The Trade Union Congress (TUC) has expressed dissatisfaction with the situation, hinting at potential strike actions if conditions do not improve, stating, “With the current situation, anything can happen.”
