By Ikugbadi Oluwasegun
“Fuel subsidy is gone, and it is gone forever.” These were the words of President Bola Ahmed Tinubu on May 29th, 2023. Now, 18 months later, fuel scarcity has returned across major states in Nigeria.
For over two weeks, demand for fuel has outstripped supply, leading to widespread scarcity. Long queues and inflated prices have become the norm, with no clear explanation from authorities.
The Honourable Minister of Petroleum seems to have run out of ideas on how to allow market forces to determine fuel prices effectively. Could there be a hidden agenda behind the price regulation scheme?
Major marketers like NNPC, Total Energies, and Oando Plc are not selling fuel, leaving non-government marketers to sell at unregulated prices.
On Thursday, August 16th, 2024, I purchased fuel at ENYO Filling Station in Igando for N625 per litre. When I returned the next day, the station had run out of fuel. I went to Brichfame Oil & Gas and bought fuel for N855 per litre.
On Saturday, I attempted to get fuel again. Petro Safe along Igando Road was selling at N650 per litre, but the long queue stretched along the road. While considering whether to join the queue, someone informed me of a station selling at N680 per litre. I drove to the AP station on Odo-Isuti Road, where the queue was shorter. Despite my skepticism about a station selling for N680 without a queue, I decided to buy fuel. I asked the attendant to sell N7,000 worth into my vehicle and N2,000 into a gallon. However, the attendant requested an additional N100, making the total N9,100 before I could leave.
Curious about the litre measurement, I analyzed the N2,000 worth of fuel. Using a 75 centiliter container, I discovered that 14.7 centiliters, or approximately 15 centiliters, were missing from each litre, equivalent to N102 per litre. This meant that instead of buying fuel for N680 per litre, I was unknowingly paying N782 per litre—a tactic used by independent marketers to exploit innocent Nigerians.
Mr. Chukwueze, a fellow fuel buyer, shared a similar experience. He bought N5,000 worth of fuel at the AP station in Afolabi, where fuel was sold for N700 per litre. He lamented that the meter was not up to standard, reducing the quantity of fuel received.
No authority is checking filling stations to ensure their meters meet the standard, leaving each station manager to decide the litre quantity.
On Sunday, I expanded my investigation beyond Alimosho to other parts of Lagos. I visited Ojo Local Government, heading towards Badagry Road to monitor fuel prices. From Iyana-Iba to Mile 2, I visited over 20 stations. Some were closed due to a lack of fuel, while others, like Penafort, RAAF, and Arigubu Oil and Gas, sold fuel for N850 to N860 per litre. Ghe Ghe Petroleum and First Blefvic Petroleum were selling at N870 to N900 per litre.
Despite government promises, refineries have refused to produce oil, and the Port Harcourt Refinery has postponed operations for the sixth time. Private refineries, ready to produce, cannot get crude oil. Alhaji Aliko Dangote has lamented the government’s refusal to supply crude oil to the Dangote Refinery in Lagos, alleging that powerful individuals are profiting from continuous importation.
On Monday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, acknowledged the fuel supply tightness in parts of Lagos and the FCT, citing distribution challenges. He urged motorists to avoid panic buying, assuring that the company is working with stakeholders to restore normalcy.
The impact of fuel scarcity is also felt in transportation costs. Fares have skyrocketed, with Iyana-Iba to Mile 2 increasing from N300 to N500, and Marina to Lekki Phase 1 from N500 to N700. During my commute, passengers frequently expressed frustration over the fare hikes caused by the fuel scarcity.
