The Nigerian National Petroleum Company Limited (NNPCL) has issued a warning to Nigerians to prepare for an impending fuel scarcity.
Adedapo Segun, the Executive Vice President of NNPCL (Downstream), delivered this caution during a televised interview on Thursday.
Segun’s statement follows the recent increase in fuel prices, which has already created widespread hardship throughout the country.
He emphasized the need for a perfectly competitive market to maintain stable fuel prices and consistent fuel supplies in Nigeria.
Financial Strain and Supply Issues
The NNPCL is facing substantial financial strain due to the high costs of importing fuel. Despite being a major oil producer, Nigeria imports most of its fuel needs because of its limited refining capacity. This financial strain has placed considerable pressure on the company, threatening the sustainability of fuel supplies.
Impact on Daily Life
The fuel scarcity has resulted in long queues at petrol stations, particularly those operated by NNPCL, where fuel is sold at cheaper rates compared to private operators. Many stations have been shuttered, exacerbating the crisis and causing traffic jams. Drivers often wait for hours to purchase fuel, with some stations selling petrol at significantly higher prices than others.
Market Dynamics and Price Hike
The NNPCL has recently admitted to a significant debt burden, estimated at around $6 billion, which has further complicated the fuel supply situation. The company has suspended the sale of petrol to independent marketers, leading to a surge in prices at filling stations not owned by NNPCL. Petrol now sells for around ₦950 to ₦1,300 per litre in some areas, a price hike that has sparked protests and widespread discontent.
Call for Competitive Market
Segun emphasized the need for a perfectly competitive market to ensure stable fuel prices and supplies in Nigeria. This would involve allowing more independent marketers to import fuel, thereby reducing the monopoly held by NNPCL and potentially stabilizing prices.
As the fuel crisis continues, Nigerians are advised to prepare for further shortages and potential price increases, highlighting the urgent need for comprehensive solutions to address the underlying issues affecting the country’s energy sector.
