The Recent developments in Lagos state suggest that the ongoing fuel shortage in the country may persist for an extended period. Several factors, including a substantial $6 billion debt owed to fuel suppliers, limited liquidity, and other challenges, have placed significant strain on the Federal Government’s ability to consistently import and distribute petroleum products.
The importation of the product has been hindered by oil marketers due to the high foreign exchange rate of $1,500/$, resulting in an increased landing cost of the product exceeding N1,100 per liter.
Petrol shortage Is Out Of control As The Economy Is In Critical Condition
Furthermore, the Nigeria economy is currently facing several challenges, as reported by the Nigeria Employers Consultative Association. These challenges include fluctuations in the foreign exchange market, continued low crude oil production, and a high monetary policy rate that restricts business activity.
In addition, players in the supply chain have taken steps to make sure they get as much of the limited supply as possible, according to Vanguard’s checks.
Also, it was gathered that under the current arrangement, major marketers, their dealers, and depot owners get the product at about N560 per litre and sell it to independent marketers for between N670 and N680 per litre.
The independent marketers that incur the cost of transportation to many parts of the nation, including the outskirts, sell the product to off-takersat between N700 and N900 per litre, depending on location.
There were long queues at the few filling stations that opened to customers, yesterday, while several without the product shut their gates.
