Yet another Fuel scarcity!
Apart from the regular hustle and bustle that Lagos residents are used to, fuel queues resurface in various parts of the state as frustrated motorists flanked around filling stations. That can only mean one thing: fuel scarcity.
Fuel scarcity again? Why?
Well, the gist now is that some filling stations are selling at the regular price which is ₦170 per litre while some others are selling for as high as ₦200 and ₦250 per litre. The stations selling at the regular price are those owned by the Major Oil Marketers Association of Nigeria (MOMAN) while those selling at the high price are those owned by the Independent Petroleum Marketers Association of Nigeria (IPMAN).
According to IPMAN, the reason for the price hike is majorly because the NNPC has refused to sell petroleum products to their marketers. This in turn is causing these marketers to purchase products from third parties at high prices (the additional transportation costs aren’t making it any better). They claim that the landing cost of the products to their stations from third parties is almost ₦218 per litre and as such, they have to increase their selling price too. IPMAN has also stated that if the problem lingers, Nigerians should be ready to buy fuel at really high prices in the next few weeks.
According to IPMAN, the only lasting solution to the issue of fuel scarcity is the total deregulation of the petroleum sector. What the total deregulation of the sector will do is it will shift the burden of the product from the government to Nigerians. The government will stop paying subsidies on petroleum products.
The major implication of total deregulation in the petroleum industry is that Nigerians will now have to buy petroleum products at a premium. Pump prices could skyrocket from the regular 170 Naira per litre we know now to as high as 400 Naira per litre.
The question now is: Will Nigerians prefer to buy petroleum products at a premium as long as there’s no more scarcity or stick with the present price and all the drama that comes with it?
#STATEAFFAIRS is a segment that gives you a quick rundown of various political and state issues as they happen in the most simple, subtle language. In this edition, we are looking at the fuel scarcity issue and a potential increase in pump prices.
