Lagos and Ogun states, two bustling regions in South-West Nigeria, are grappling with a renewed bout of fuel scarcity, causing distress among residents who must endure long and excruciating queues at filling stations.
The scenes are reminiscent of a time not too long ago when Nigerians faced chronic fuel shortages. Now, as long queues snake their way through the streets, anxiety and frustration have become the order of the day.
Depot Dilemmas and Vanishing Petrol
The primary cause of this fuel crisis can be traced back to issues at the depots. Akin Akinrinade, the Chairman of the Independent Petroleum Marketers Association of Nigeria, Satellite Depot, has revealed that their depot has been idle for the past three weeks.
He cited pipeline vandalism as a major factor, asserting that this problem isn’t limited to just one depot as even the NNPCL Retail depot is operating with a skeletal dispatching of products, he disclosed.
This latest disruption comes in the wake of efforts by NNPCL to put its pipelines back into operation.
The Satellite depot, which had recently resumed operations, fell victim to vandalism yet again in July despite efforts to put an end to the menace.
However, the pipeline vandals have proven to be a persistent menace, affecting the supply chain and causing widespread hardships.
Rising Costs and Limited Imports
Fuel scarcity isn’t solely a result of pipeline disruptions as importation costs have also soared, making it increasingly challenging for marketers to afford petrol at the depots.
Also, the rising exchange rate and the escalating cost of crude oil on the international market have contributed to this conundrum.
The result is that many filling stations have been forced to close down or cut back on operations. The situation has become so dire that even stations with multiple outlets are shuttering some of them due to financial constraints.
Demand Outpaces Supply
The ripple effect of these challenges is a surge in demand that is far outstripping supply. NNPCL, which had aimed to reduce its fuel imports, now remains the primary importer due to the dearth of private imports.
Marketers who were expected to supplement NNPCL’s imports are not doing so, exacerbating the crisis.
The Future of Fuel Supply in South-West Nigeria
While NNPCL has plans to cut down on its fuel imports once the Dangote Refinery starts producing, the current circumstances cast doubts on when this will become a reality.
The NNPCL had previously stated its intent to purchase petroleum products from the Dangote Refinery, in which it owns a 20 percent stake, as soon as they become available.
For now, the people of Lagos and Ogun states, as well as other South-Western regions, are left counting the costs of this fuel scarcity. Prices have surged, and the uncertainty surrounding future supplies only adds to the anxiety.
As long queues persist and the pump price continues to rise, residents and businesses alike are left hoping for a swift resolution to the challenges plaguing the fuel supply chain in Nigeria’s economic powerhouse, Lagos, and its neighboring state, Ogun.
