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Fuel Scarcity: Commuters Stranded, Fares Rise

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  • Fuel Scarcity: Commuters Stranded, Fares Rise

Commuters, motorists and other users of Premium Motor Spirit (petrol) faced tougher conditions on Tuesday as the latest round of fuel scarcity in the country got worse, with its attendant negative impacts on transportation and businesses.

Some frustrated Nigerians narrated to our correspondents their ordeals while trying to get petrol at the few filling stations that were selling the product in Lagos, Ogun, Abuja and Owerri.

Our correspondent who visited the Nigerian National Petroleum Corporation depot in Ejigbo, Lagos, learnt that only 28 tankers loaded PMS on Tuesday, down from between 40 and 50 tankers daily before the scarcity began, while many private depots in Apapa were still without the product.

Commuters were seen at many bus-stops struggling to get commercial vehicles to different destinations, even as transport operators increased the fares by as much as 100 per cent on most routes.

The long queues of desperate motorists at some filling stations in parts of Lagos spilled onto the roads and caused gridlock, making commuters to suffer more pain.

A commercial vehicle driver, Mr. Obinna Jonathan, said, “We don’t know where this country is heading to because we experience fuel scarcity every year, especially in December. Since morning, I have been looking for fuel. Even yesterday (Monday), I know how I struggled to get N3,000 worth of fuel, which I used to convey passengers.

“It is really affecting my work because as a commercial driver, if I don’t have fuel in my vehicle, I can’t work; I am not going to put water in the tank. The government should really look into this issue because we are suffering in this country. I am even tired of this country; if I see a way to get out of this country, my brother, I will just vanish from Nigeria. Believe me, we are suffering in this country.”

Another transporter, Mr. Muftau Badmus, who was seen pouring petrol from a jerry can into his tricycle at Cele Bus-Stop, along the Apapa-Oshodi Expressway, said he got to a filling station at around 5:30am and did not get fuel until around 2pm.

“I have told myself that after using up the fuel I bought today, I won’t come out tomorrow. The government should help us to solve this scarcity because the poor people are the ones suffering now. All the government people are not suffering but we that voted for them are the ones feeling the pain,” he lamented.

With sweat running down her face as she sat in her car waiting at a filling station along Okota Road to get petrol, Mrs. Kate Chukwu did not hide her frustration over the situation in the country.

She said, “I have been in the queue for over one and half hours just to get fuel. It is really outrageous and frustrating that we even have to pay an extra N200 to get the fuel. It is really bad because now I am supposed to be at home cooking, but I am here waiting to get fuel.

“Last Sunday, in my church, they said we should pray for our country. But I refused to pray because I know that my prayer cannot solve Nigeria’s problems; we have a lot of things that are not in order.”

A motorist, Mr. Sunday Isong, said the struggle to get petrol had disrupted his plan to travel to Cross River.

He stated, “Today, I am very confused and tired; I have been running up and down the whole day to get fuel. My car stopped at a particular point because of fuel. I started moving up and down with a jerry can, looking for fuel. I was eventually able to buy five litres of fuel for N1,200, which I put in the car to enable me to run around to see where I can get more fuel.

“I don’t know what is happening in this country. In some stations, they are not selling to vehicles but to those with jerry cans so that they can get extra money. The government should quickly do something about this. Our country has crude oil; so I don’t know what is causing fuel scarcity.”

Mr. Yemi Adewole, who runs a laundry business, alleged that many of the filling stations had the product but were reducing the rate at which they sold it so as to profiteer from the situation.

Meanwhile, the Department of Petroleum Resources said in a statement that it had come to its notice that some depot owners were selling PMS to unlicensed bulk buyers and some retailers at prices above the approved ex-depot prices, adding that some retail outlets were hoarding the product or selling at above the industry-set cap price.

The Zonal Operations Controller, Lagos, DPR, Mr. Wole Akinyosoye, said, “These actions are clear violations of the Petroleum Act, 1969 and extant regulations, and they exacerbate the current supply challenges by bringing unnecessary hardships on the consumers.”

He added that the agency had been punishing the errant operators and warned that penalties would be imposed on any operator engaging in illicit acts.

“We are also assuring the public that the government is doing everything to ensure the restoration of normalcy to the sector,” he added.

In Owerri, the Imo State capital, a litre of petrol sold for N200 on Tuesday instead of the approved price of N145.

This is even as the prices of goods and services, especially transportation fares, have increased by between 80 per cent and 100 per cent.

Most residents of the city called on the Federal Government, through the DPR and the state’s Ministry of Petroleum Resources, to caution the independent petroleum marketers in the state.

A commercial driver in Owerri, who gave his name as Johnson Emmason, flayed the owners of filling stations in the state for what he called arbitrary increase in the pump price.

Meanwhile, the NNPC said on Tuesday that it had started releasing 470 trucks of PMS to Abuja and Lagos despite the persistent queues for the product by motorists at the few filling stations that dispensed it.

In Abuja and neighbouring states of Kaduna and Nasarawa, the queues for petrol persisted on Tuesday, as hundreds of motorists struggled to get the product.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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Gas-Pipeline

The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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Economy

South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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