Fuel queue returns

Fuel queues returned in Lagos, Abuja, Ibadan, and other places over the weekend amidst growing scarcity.

What’s the problem now?
Marketers have blamed the situation on a decline in supply, claiming that demand for gasoline was currently higher than what the Nigerian National Petroleum Company Limited is supplying. “It is simply a situation of demand overwhelming supply. The supply process is not efficient to be able to meet the demands for products”, said Billy Gillis-Harry, the President, of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN.

What’s the issue with supply?
Marketers were reported to have met with the NNPC’s marketing arm and the Pipelines and Product Marketing Company, PPMC, two weeks ago, and were interrogated on the diversion of petroleum products to neighboring nations. According to reports, due to concerns about product diversion, the supply of items to oil marketers was reduced.

Why are the marketers diverting to other countries?
Profit, as the control price in Nigeria, appears to no longer be feasible due to the increasing cost of transportation to retail outlets. The Secretary of the Independent Petroleum Marketers Association of Nigeria, Akeem Balogun, stated in a statement on Monday that the product cannot be sold at less than N180 per litre at the current price, and urged members to sell at a price that is sustainable in their environment, but ensure that the price is displayed on their pump.

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