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11 Months After Subsidy Removal: Nigerians Still Grapple with Fuel Scarcity, Long Queues

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Almost a year after the federal government eliminated fuel subsidy and deregulated the market, Nigerians are still facing the daunting challenges of fuel scarcity and interminable queues at petrol stations nationwide.

Despite assurances from the Nigerian National Petroleum Company Limited (NNPCL) about regular supply, oil marketers continue to exchange blame for the persistent fuel scarcity, with queues extending in major cities across the country.

The removal of fuel subsidy by President Bola Tinubu on May 29, 2023, during his inauguration, led to a sharp increase in petrol prices nationwide. The intention behind the subsidy removal was to liberalize petrol imports to the private sector, as mandated by the Petroleum Industry Act 2021, thereby breaking the NNPCL’s monopoly on petrol importation.

However, due to challenges in obtaining foreign currency for importation, private oil firms have struggled to participate effectively in petrol importation, leaving the NNPCL as the sole importer of petrol in Nigeria once again.

Despite earlier claims by the NNPCL that it was no longer the exclusive supplier of petroleum products in the country, forex shortages have compelled the company to retain its monopoly on fuel importation, citing oil marketers’ inability to cope with price fluctuations in the downstream sector.

The recent emergence of fuel queues in Lagos and Abuja, among other cities, underscores the prevailing scarcity. While some independent petrol stations have run dry, others are selling petrol at exorbitant prices, exacerbating the plight of motorists and commuters.

The NNPCL has reassured Nigerians of regular fuel supply and urged them to refrain from panic buying. Nonetheless, complaints from independent marketers about irregular supply persist, indicating underlying challenges in the distribution network.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributes the fuel scarcity to logistical hurdles affecting petroleum product supply nationwide. IPMAN leadership has engaged with the NNPCL, receiving assurances of adequate petrol supply in the near term.

In Abuja, the scarcity has triggered long queues at filling stations, leading to increased transport fares and inconveniences for commuters. Similar scenes are witnessed in other major cities, including Kaduna, Maiduguri, and Kano, where fuel stations either remain shut or sell petrol at inflated prices.

While the NNPCL has addressed specific supply issues in Lagos, challenges persist in other regions, contributing to the protracted fuel scarcity across the country. Motorists and residents continue to grapple with the adverse effects of the ongoing crisis, calling for urgent interventions to alleviate their plight.

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