5 Reasons Why Nigeria Is Presently Experiencing Fuel Scarcity

It is no longer news that Nigeria is presently experiencing fuel scarcity, The scarcity which began in Lagos on the 7th of February 2021, has hit different parts of the country, including Abuja and Ilorin and numerous cities across the country.

Although this is not the first time the country is experiencing such, Nigerians however still find it bewildering that a country that is one of the major oil exporters in Africa is experiencing a fuel crisis. Well here are the 5 reasons why the country is presently experiencing fuel scarcity.

1. Limited Methanol Quantities

According to a report that announced the scarcity on NairaMetrics, the fuel scarcity was caused by the limited methanol quantities above Nigerian specifications discovered in the country’s petroleum supply chain. The report noted that the discovery was made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), who announced it on Twitter on Tuesday evening. It further stated that the impacted products have been isolated and withdrawn from the market.

2. Limited supply from NNPC

In Another report,  The Independent Petroleum Marketers Association of Nigeria (IPMAN) Stated that the reason for the fuel scarcity was due to the shortage of supply from the Nigerian National Petroleum Corporation (NNPC).   The Petroleum Marketer body noted that the discovery of the bad and poor quality of fuel in the supply chain led the Nigerian National Petroleum Corporation to stop and reduce the distribution of the product for proper investigation, thereby leading to a shortage of supply. Recall that the Petroleum corporation had assured Nigerians that the company has sufficient stock of petrol, to meet their needs.

3. NARTO Strike

Aside from the issues facing the country’s petroleum supplying bodies, another reason why Nigeria is presently experiencing fuel scarcity is the Nigerian Association of Road Transport Owners (NARTO), who threatened to withdraw their haulage services if the federal government fail to urgently address the rising cost of operation that its members are facing. According to a report on the Guardian,  the association’s National President, Yusuf Lawal Othman stated that his members now find it difficult to remain afloat because of the high freight rate, which is regulated and paid in arrears. He insisted that members would be advised to ground their haulage tankers if nothing was done to address the matter, describing the business environment as scorching and unbearable.

4. Receding petrol sufficiency days and stock figures.

According to a report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the country is presently experiencing fuel scarcity due to the receding petrol sufficiency days and stock figures.  The report titled  ‘Petroleum Products Stock & Days Sufficiency Report 27th January 2022,’ noted that the NNPC used to boast of 30 to 40- day stock sufficiency and about two billion metres, but the record dipped to 24.02-day sufficiency and about 1,345,338,930 litres stock of petrol.

5. Fuel Hoarding by Independent Marketers

An unverified report also stated that one of the reasons why Nigeria  is presently experiencing fuel scarcity is because some independent marketers are hoarding available petroleum products for unknown reasons, It is believed that the marketers do so as to resell the products at the height of the crisis for maximum profits. Reacting to the allegations an independent petroleum marketer whose indentity was not revealed said there had been complaints from some motorists on the fuel quality which made many fuel stations to stop selling . He said “Some independent marketers are not hoarding products as is being alleged. Some of us were affected by the supply we got and we are trying to resolve the situation so that we can continue our business. ’’