Petrol shortages have escalated across Lagos, Ogun, and other states as independent marketers now source the product from private depots at N780 per litre, a substantial increase from the previous N595 per litre—an upsurge of 31 percent.
Marketers attribute this price hike to the current imbalance between supply and demand in the domestic market. Chief Chinedu Ukadike, Public Relations Officer of IPMAN, confirmed the price adjustment and expressed hope for an improvement soon. He indicated that more trucks have been dispatched from depots recently and that, despite the high acquisition costs, a larger number of marketers are managing to load their trucks.
Ukadike noted that the Nigerian National Petroleum Corporation (NNPC) has started supplying products to independent marketers. He described current queues as “ghost queues”—temporary and fading throughout the day—and anticipates that the situation will stabilize as supply increases.
The ongoing distribution issues, persisting for about six weeks, have resulted in prolonged queues at filling stations nationwide. While some stations in Abuja have seen slight improvements, supply remains inconsistent in other areas of the Federal Capital Territory. Prices at filling stations vary significantly, with major marketers charging around N685 per litre and independent outlets reaching up to N950 per litre.
Marketers face rising operational costs due to higher transportation expenses. One marketer explained that the cost of transporting the product has surged from N800,000 to N3.5 million, attributed to increased diesel prices and maintenance costs.
IPMAN is awaiting a meeting with Dangote Refinery’s management, hoping to streamline transactions and reduce costs by eliminating middlemen. Ukadike stressed the association’s commitment to direct dealings with the refinery to avoid inflated prices caused by intermediaries.
The scarcity has worsened in Lagos, Ogun, and other states, with long queues reappearing and pump prices varying widely. At some filling stations, prices have reached between N900 and N950 per litre, while others have shut down due to lack of stock. Fuel is also being sold informally at inflated prices ranging from N1,000 to N1,500 per litre.
Transport fares have surged by over 200% due to the fuel crisis. Commuters now face significantly higher costs for travel, with fares from Ikorodu to Victoria Island in Lagos increasing to about N6,000 from less than N2,000. Drivers are struggling with the impact of high fuel prices, long queues, and increased vehicle maintenance costs. Some drivers report that their earnings are insufficient to cover expenses, and they are concerned about the viability of their businesses if the situation continues.
Depot prices are also expected to rise further, with some operators planning to increase prices to N800 per litre. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been criticized for inadequate monitoring, contributing to irregularities at filling stations.
NNPC’s Vice President (Downstream), Dapo Segun, attributed the supply challenges to weather conditions, including rains and thunderstorms, which have affected transportation routes and fuel discharges. He acknowledged the difficulties and assured that efforts are being made to address them.
PENGASSAN President Engr. Festus Osifo criticized government policies, particularly the floating currency, for exacerbating the economic hardships and driving up fuel prices. He warned that Nigeria is on the brink of becoming a failed state if energy needs are not met, emphasizing the need for urgent reforms to alleviate the crisis.
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