Fuel prices have reached previously unheard-of heights in Nigeria due to a severe gasoline shortage that has affected major cities like Lagos and Abuja. This has worsened the country’s ongoing dilemma of rising living expenses. Tuesday saw a spike in gas prices over 850 naira per liter at some retail locations in Lagos and Abuja. In some areas, like Kano, prices even went past 1000 naira. The country’s only gasoline importer, NNPC Ltd., a state-owned oil company, sets prices for gasoline at 617 naira a liter, which is significantly higher than this increase.
The decision by President Bola Tinubu to do away with fuel subsidies and allow private importers into the market last year is what has caused the increase in fuel prices. Unfortunately, NNPC is now the only major importer due to ongoing foreign exchange shortages and a continuous limit on gasoline prices, resulting in a quasi-monopoly. Spokesman for the NNPC has charged certain retailers of taking unfair advantage of these conditions to artificially raise prices.
Buses are still stuck in lengthy lines at gas stations, leaving many commuters stranded. Public transportation has been severely impacted. Analysts believe that if gasoline shortages persist, there will be a major increase in the price of staple foods as a result of this transportation disruption.
Public dissatisfaction is being heightened by price increases and shortages, as evidenced by an increase in irate remarks on social networking sites like X. “You have the money for travel but no bus, you have the money to buy fuel but there is scarcity,” said a dejected user. There would be no light (electricity), heat everywhere, and expensive things. How did we earn the right to have our leaders?”
In response to the situation, the NNPC has assured the public that its current inventory of over 1.5 billion liters of gasoline should be sufficient for at least 30 days while blaming the fuel shortages primarily on logistical issues. Notwithstanding this guarantee, the company’s financial difficulties and its incapacity to supply enough petroleum for nearby refineries complicate the already convoluted story of gasoline.
In order to stabilize the oil industry and lessen the strain on the federal budget, the government decided to eliminate gasoline subsidies. The projected benefits have been overwhelmed by increased economic hardship for the typical Nigerian, making the transition anything but seamless. Urgent action is required to stabilize fuel prices and supply.
