Nigerians continue to grapple with petrol scarcity as the landing cost of Premium Motor Spirit (PMS), also known as petrol, has surged to a staggering N978 per litre.
At the black-market rate of N1,500 per dollar, findings showed the landing cost of petrol, which includes the productâs international price, shipping, insurance, and other charges, increased to N978/litre from N720/litre in October 2023.
A senior executive in the downstream sector told BusinessDay,
On Monday, the naira plunged to a three-month low of N1,530 per dollar on the black market, or parallel market, as end users’ desire for the dollar increased.
In comparison to the N1,520 that was quoted on the black market on Friday, this indicates a 0.65 percent (N10) loss. On July 9, 2024, local currency was valued at N1,5723 per US dollar, based on information compiled by FMDQ.
According to Aisha Mohammed, an energy analyst at the Centre for Development Studies in Lagos, the government is partially subsidizing the commodity for social, political, and commercial reasons.
Mohammed said:
Additional research revealed that the N978 landing cost does not include other distribution costs, vessel charges, Nigerian Maritime Administration and Safety Agency charges, or charges from the Nigerian Ports Authority.
A study to lower petrol prices is being called for by some experts, as some of these are charged in dollars.
The source said:
Black marketers took advantage of the long lines of drivers at the few gas stations on Tuesday by boosting their prices to between N1,000 and N1,100 per liter.
In several retail establishments, particularly in Abuja, Nasarawa, and Niger, the pump price was raised to N900 per liter.
NNPC clarified that the lines were caused by recent thunderstorms and logistical issues that interfered with fuel-loading jetties’ operations.
To address the issue and shorten the lines, the corporation did, however, clarify that it is collaborating with relevant parties.
In response, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, verified that the NNPC had given marketers assurances that the problem was being resolved.
He clarified, though, that the lines might not go away in the coming days and that areas distant from large depots would likely see lengthier lines for fuel.
He stated:
TimesNow.com.ng also reported that a fresh wave of gasoline shortages hit Lagos state and other regions of the nation, resulting in long lines at gas stations and sharp price increases for fuel, with some stores selling it for an unsettling N900 a litre.
ThisDay reported that the supply crisis also affected the Federal Capital Territory (FCT) and the states around it.
