Fuel Price Hike Sparks Scarcity and Station Closures Across Nigeria

A recent report has highlighted a significant increase in the price of fuel by private depot owners, jumping from ₦630 to ₦720 per litre.

This surge has exacerbated fuel scarcity issues in Abuja and nearby states, with some filling stations charging as high as ₦900 per litre.

The scarcity has now begun to affect Lagos and Ogun states, where several filling stations have depleted their stocks due to their refusal to purchase high-priced fuel from private depots.

Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, explained in an interview that many stations remained closed because they lacked fuel supplies.

Fashola urged the Nigerian National Petroleum Company Limited (NNPC), the sole importer of petrol currently, to provide clarity on the situation. He pointed out that independent marketers were unable to afford fuel from private depots, where prices range between ₦715 and ₦720 per litre.

High operational costs, including transportation and depot expenses, further deterred marketers from purchasing at these rates, thus contributing to the shutdown of many stations.

Previously, private depot owners sold petrol to independent marketers at rates between ₦630 and ₦650 per litre, whereas NNPC’s prices to major marketers hovered around ₦600 per litre. Recent developments saw NNPC officials intervening at depots in Apapa, directing fuel supply towards Abuja to alleviate queues observed there initially.

Throughout Lagos and other areas, several fuel stations adjusted prices upwards due to the ex-depot price climbing to ₦710 per litre, leading some dealers to shut their retail outlets. Motorists, consequently, faced long queues at the few stations still dispensing fuel, primarily those operated by NNPC and major oil marketers.

In Lagos, for instance, only a few out of many fuel stations along the Ikotun to Egbeda axis were operational, with one NNPC outlet selling at ₦568 per litre while another at Igando-Ikotun sold at ₦820 per litre.

Meanwhile, a TotalEnergies outlet along Mushin Road in Isolo charged ₦615 per litre, also attracting long queues.

The situation remains fluid, with ongoing challenges in fuel availability and pricing impacting consumers and businesses alike across various states in Nigeria.